FSC chair ap­proves pos­i­tive res­cue fund ef­fects


Fi­nan­cial Su­per­vi­sory Com­mis­sion (FSC, ) Chair­man Tseng Ming- chung ( ) stated his op­ti­mism about a sta­ble Tai­wan eq­uity mar­ket yesterday should for­eign stocks per­form fa­vor­ably as well, and an­nounced fi­nan­cial mea­sures to back up the Cab­i­net.

Dur­ing a post- Cab­i­net meet­ing press con­fer­ence, Tseng ex­pressed his sat­is­fac­tion with the pos­i­tive im­pact of the Na­tional Sta­bi­liza­tion Fund ( ) on the na­tion’s stock mar­kets and in fur­ther earn­ing in­vestors’ trust in the mar­ket.

“The ini­tial signs show that the funds have sta­bi­lized the mar­ket,” Tseng said. “U.S. stocks ral­lied on Wed­nes­day at 619 points, and while China’s stocks opened low at ap­prox­i­mately 30 points, it made a grad­ual come­back, ris­ing at least 30 points to 60 points.”

Tseng also im­plied that Tai­wan’s stocks will con­tinue to re­main steady should the U.S. and Euro­pean mar­kets per­form well dur­ing trad­ing on Thurs­day.

The chair­man re­futed media spec­u­la­tion that Tai­wan’s clos­ing per­for­mance on Wed­nes­day, which showed only a rise of 39.95 points com­pared to an ear­lier 100-point rise, was due to trad­ing from large­cap stocks and that in­di­vid­ual share­hold­ers were tak­ing ad­van­tage of res­cue funds by mak­ing day trades.

Tseng stated that the weaker mar­ket per­for­mance was caused by sell-offs from for­eign in­vestors, who Tseng deemed were un­likely to con­duct day trades. He also said there are no cur­rent plans to reg­u­late day trad­ing as of now. “Indi- vid­ual share­hold­ers are un­likely to make huge trades as well,” Tseng said, fur­ther deny­ing that the day trad­ing sys­tem was ex­ploit­ing the in­jec­tion of res­cue funds.

FSC Backs Up Cab­i­net with

Fi­nan­cial Mea­sures

The FSC also an­nounced eight fi­nan­cial mea­sures in con­junc­tion with the Cab­i­net’s ef­forts aimed at res­cu­ing the econ­omy. Among the eight, the FSC pledged to pro­vide loans to­tal­ing NT$500 bil­lion, avail­able for large en­ter­prises as well as small and medium-sized en­ter­prises (SMEs).

Dur­ing the Cab­i­net meet­ing, Premier Mao Chi-kuo ( ) stated his op­ti­mism re­gard­ing the FSCpro­posed mea­sures in help­ing to achieve the goal of the “in­dus­try as­sist­ing the fi­nan­cial sys­tem and vice versa.” Other mea­sures in­clude en­cour­ag­ing the in­sur­ance in­dus­try to in­vest more in public in­fra­struc­ture, with in­vest­ments for the year al­ready reach­ing NT$160.2 bil­lion by the end of June.

In­dus­tries that would ben­e­fit from the loan quota in­clude the se­nior care sec­tor. Mao en­cour- aged the FSC and the Min­istry of Health and Wel­fare (MHW) to push for more in­sur­ance in­dus­try in­vest­ment mea­sures for the se­nior care mar­ket, which in­cludes long-term care for the dis­abled, as­sist­ing suf­fer­ers of de­men­tia as well as other ser­vice in­dus­tries.

Mea­sures are to be clas­si­fied ac­cord­ing to the need for amend­ments to the law, Mao stated. For mea­sures that do not re­quire amend­ments, Mao en­cour­aged the FSC to in­ject more re­sources into in­dus­tries pro­vid­ing ba­sic ne­ces­si­ties from cloth­ing, food, ac­commo- da­tion and trans­porta­tion as well as ser­vices for se­niors aged 65 and above.

Another FSC- backed ven­ture in­cludes more proac­tively as­sist­ing the cul­tural and cre­ative in­dus­tries to ob­tain op­er­a­tional fund­ing, aim­ing for an in­crease of NT$180 bil­lion in loans in the next three years.

On as­sis­tance aimed at help­ing SMEs, the FSC also in­creased na­tional banks’ loan quo­tas to NT$360 bil­lion this year — an in­crease from the pre­vi­ous quota of NT$240 bil­lion.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.