10% daily stock price limit starts June 1: FSC

The China Post - - LOCAL - BY ENRU LIN

The Fi­nan­cial Su­per­vi­sory Com­mis­sion ( FSC, ) said yes­ter­day it will widen the daily stock fluc­tu­a­tion limit from 7 to 10 per­cent on June 1, three months ahead of sched­ule.

Ear­lier this year, the FSC an­nounced a plan to al­low daily stock fluc­tu­a­tions within a 10-per­cent range, up from the long-stand­ing 7 per­cent, start­ing on Aug. 3. The Tai­wan Stock Ex­change (

), the Taipei Ex­change ( ), the Tai­wan Fu­tures Ex­change (

) and other re­lated units have agreed to an ear­lier im­ple­men­ta­tion on June 1, the FSC’s Se­cu­ri­ties and Fu­tures Bureau ( ) said yes­ter­day.

As a com­ple­men­tary mea­sure to con­trol risk, the FSC will raise the ac­count col­lat­eral main­te­nance ra­tio from 120 per­cent to 130 per­cent start­ing May 4.

The fi­nan­cial reg­u­la­tory body said it is co­or­di­nat­ing with Tai­wan’s se­cu­ri­ties firms to pre­pare tech­ni­cal ad­just­ments, in­for­ma­tional man­u­als and a me­dia cam­paign for in­vestors ahead of im­ple­men­ta­tion.

Th­ese mea­sures are part of the FSC’s “as­cen­sion plan” ( ), a pack­age of stock mar­ket stim­u­lus mea­sures that pro­mul­gated on Feb. 3.

The pack­age in­cludes 15 projects — in­clud­ing a re­form on ex­change- traded funds and an in­ter­na­tional crowd-sourc­ing plat­form — that are slated for launch through­out the year.

The FSC’s as­cen­sion plan is aimed at align­ing Tai­wan with in­ter­na­tional prac­tices and en­cour­ag­ing in­vestors to keep funds in the lo­cal mar­ket, ac­cord­ing to FSC Chair­man Tseng Ming-chung ( ).

FSC on the AIIB

Also yes­ter­day, the FSC ad­dressed Tai­wan’s bid to join the China-led Asian In­fra­struc­ture In­vest­ment Bank (AIIB, ).

The Ex­ec­u­tive Yuan’s Main­land Af­fairs Coun­cil ( ) yes­ter­day sub­mit­ted Tai­wan’s for­mal dec­la­ra­tion of in­ter­est in join­ing the AIIB, a mul­ti­lat­eral Bei­jing-led fi­nan­cial in­sti­tu­tion.

Based on its own as­sess­ment, the FSC be­lieves that AIIB membership would serve Tai­wan’s eco­nomic in­ter­ests, Tseng said yes­ter­day.

The AIIB is an in­ter­na­tional fi­nan­cial in­sti­tu­tion — if Tai­wan is able to join, do­mes­tic banks can par­tic­i­pate in a wider range of syn­di­cated loans and in­te­grate deeper into bank­ing net­work, Tseng said.

The FSC chair­man was speak­ing on the side­lines of an awards cer­e­mony in Taipei by Global Views Mag­a­zine ( ).

The AIIB, which mainly funds in­fra­struc­ture projects in less-de­vel­oped re­gions of Asia, will pro­vide busi­ness op­por­tu­ni­ties to Tai­wan’s con­struc­tion and con­struc­tion en­gi­neer­ing sec­tors, Tseng said.

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