FSC holds ‘pledging ceremony’ for stock market rescue
The Financial Supervisory Commission (FSC, ) called an adhoc “pledging ceremony” yesterday to urge the financial sector to help lift the equity market.
Chien Hung- wen ( ), chairman of the co-host Taiwan Securities Association ( ), said the event was altered at the last minute from a training seminar to a pledging ceremony after Monday’s historic fall on TAIEX.
In his opening address, FSC Chairman William Tseng ( ) called on the financial sector to implement treasury shares — to buy back their own shares for sale later — in order to bolster investor confidence.
The FSC will formally invite individual insurers, banks and securities companies to hold shares in treasury, Tseng said.
Taiwan Will Be Strong
pledging ceremony, some 200 participants were seated in an auditorium with slogans such as “Save the Market to Love Taiwan, Taiwan Will Be Strong” ( , ) projected onto a large screen.
Participants included bank representatives at the managerial level, as well as members of the Taiwan Financial Services Roundtable, the Bankers Association of the R.O.C. ( ), Life Insurance Association of the Republic of China ( ) and the Fire and Casualty Insurance Association ( ).
Tseng borrowed a catchphrase from the Student Sunflower Movement, “We ourselves will save our own country” ( ) in his remarks.
“We hope that those in the financial sector who have gathered today … will take concrete steps. You yourselves can save your own equity market, and you yourselves can save your own financial sector,” he said.
He said that stabilizing the stock market is also a means of stabilizing the financial sector and the economy as a whole.
More Measures at Appropriate Time
Tseng said the FSC will continue to assess measures for encouraging investment from the financial sector as well as other policies for supporting local share prices.
These measures will be implemented “at an appropriate time,” he said.
Also on Tuesday, the National Financial Stabilization Fund Committee said it has authorized its state-managed fund to inject emergency capital into TAIEX if needed.
The weighted index on the Taiwan Stock Exchange staged a rebound on renewed investor confidence, ending up 265.30 points, or 3.58 percent, at 7,675.64 on turnover of NT$120.52 billion.
A woman watches a display of stock prices in Taipei, yesterday. Taiwan stocks rallied yesterday on renewed investor confidence, ending up 265.30 points, or 3.58 percent, at 7,675.64 on turnover of NT$120.52 billion.