"Clearly, it is not easy to control the emotions of traders and keeping them from the market is not the way to do it," Schwartz said in the paper.
"Neither is it a good idea to prevent the market from producing much-needed price information," he said.
Therefore, Andy Liang (梁永煌), president of the Chinese-language business journal Win Win Weekly (今周刊), yesterday said that he expects the yet-to-be-launched circuit breakers and regulatory changes to have minimal impact on stock investment behaviors.
He said that the circuit breaker will only be activated when major disasters occur such as terrorist attacks, earthquakes or even tsunamis to send the benchmark down by 10 percent.
The new 15 percent daily limit, however, will positively increase investors' sense of risk, since their equity investments may now fall up to 15 percent in one trading day, Liang said.
Liang gave credit to the government's stock-regulatory changes, which are in line with international standards.
Once new regulatory changes are implemented, "Foreign investors will have more confidence in the TAIEX, whose liquidity may be further boosted," Liang said.
RSS