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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

Japan and other regional partners should work together to counter Chinese military coercion and build a “non-red” supply chain, President William Lai (賴清德) said in an interview published by Nikkei Asia yesterday.

As Lai approaches one year in office, he granted his first foreign media interview this year to the Japan-based publication to discuss Taiwan’s relations with Japan, China and the US, as well as the semiconductor industry, and the international economic and trade landscape.

Amid US President Donald Trump’s proposed tariffs and escalating Chinese military exercises around Taiwan, Lai said that “Japan is a powerful nation. I sincerely hope that Japan can take a leading role amid these changes in the international landscape.”