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Home The News News Central bank wants investment curbs

Central bank wants investment curbs

The central bank is pushing for curbs to be imposed on the amount of Chinese capital that can be placed in local stocks, hoping to stem the inflow of speculative funds, an official said yesterday.

The Financial Supervisory Commission, which has the authority to set limits on Chinese funds, has been approached by central bank officials eager to keep controls tight, said Lu Ting-chieh (盧廷劼), the commission’s chief secretary.

“The central bank has expressed the hope to us that we will cut the investment amount,” Lu said.

Chinese institutional investments in stocks are expected soon after Saturday, when three financial memoranda signed by Taipei and Beijing in November take effect, including one that allows Chinese investors to place funds in Taiwan’s stock markets.

The commission had initially set the maximum for Chinese institutional investments at an overall total of US$1 billion, but the central bank’s recent approaches indicate it considers this amount too large.

The Economic Daily News reported yesterday the central bank’s move to cut the investment amount aims to curb market speculation amid fears that a massive entry of foreign funds will destabilize the New Taiwan dollar.

Source: Taipei Times 2010/01/12



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Newsflash


Ukrainian lawmakers attend a session of parliament in Kyiv on Feb. 23.
Photo: Reuters

The Chinese embassy in Ukraine attempted to thwart the Ukrainian parliament’s plan to establish a pro-Taiwan group, Newsweek magazine reported on Saturday.

Ukraine’s parliament on Aug. 17 launched the Taiwan Friendship Group, which is led by Foreign Affairs Committee Chairman Oleksandr Merezhko and consists of 15 lawmakers, two-thirds of whom belong to the ruling party.