Thu, Mar 19, 2015 - Page 13 News List

Stock orders via Line might be tested: FSC

By Amy Su  /  Staff reporter

Financial Supervisory Commission (FSC) Chairman William Tseng (曾銘宗) yesterday said the commission might evaluate the feasibility of investors placing stock orders via popular messaging app Line in one month.

Lawmakers first raised the issue during a meeting of the legislature’s Finance Committee on Monday in a bid to improve convenience for investors ordering stock transactions, with Democratic Progressive Party (DPP) Legislator Hsueh Ling (薛凌) bringing it up again yesterday.

“Currently, users are unable to record their messages via messaging apps, including Line, which renders the government unable to see it as a safe and credible method for placing stock orders,” Tseng said during a legislative question-and-answer session.

Tseng remained open to the idea, saying that if messaging apps can be proved secure, without information security risks, the commission might consider allowing investors to use these apps to place stock transactions.

Securities and Futures Bureau Director-General Wu Yui-chun (吳裕群) said the key issue is that brokerage houses must be able to record voice messages from these messaging apps to protect investors’ rights and interests, which they still cannot do through Line.

In related news, Tseng said a portion of capital in the nation might flow into the Shanghai Stock Exchange in the short term if Taiwan and China adopt the Shanghai-Taiwan Stock Connect proposal recently raised by the Chinese Securities Regulatory Commission.

“The nation has to reach a consensus on whether or not to adopt the Shanghai-Taiwan Stock Connect,” Tseng said.

China and Hong Kong initiated the Shanghai-Hong Kong Stock Connect program in November last year, with a link connecting the stock exchanges in China’s Shenzhen and Hong Kong expected to be launched in the second half of this year.

Asked about updates regarding local banks’ loans to Ting Hsin International Group (頂新集團), Tseng said the latest data showed that loans to the group have dropped to NT$19 billion (US$602.5 million) from NT$41 billion recorded in October last year, with loans from state-run banks declining to NT$3.5 billion.

The government asked state-owned banks to freeze credit to Ting Hsin and its affiliates in October, following the food maker involvement in various food safety scandals over the previous year.

Various private financial institutions have also frozen credit to the food conglomerate and its affiliates as the result of risk considerations.

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