Financial Supervisory Commission (FSC) Chairman William Tseng (曾銘宗) yesterday urged the nation’s financial sector to step up risk hedging and contingency measures to weather global market volatility.
In light of wide swings in the TAIEX since Monday, Tseng said that it is too early to consider lifting a ban on short selling or returning the minimum margin for short sales from 120 percent back down to 90 percent, as markets have, thus far, remained unstable.
“Factors such as a potential interest rate hike in the US and a weakening yuan are likely to spur volatility in global markets, affecting all aspects of domestic financial institutions’ operations, including individual finances, investments and lending,” Tseng said outside the Taiwan Academy of Banking and Finance (台灣金融研訓院).
The academy yesterday invited former Japanese Financial Services Agency commissioner Ryutaro Hatanaka to share insights and updates on financial regulatory efforts in Japan and internationally.
Tseng said that many insurance companies have more than 50 percent of their total investments allocated overseas, and that they must be prepared to make appropriate adjustments according to their risk profiles.
Tseng said that he is not issuing warnings to specific companies, but that he wishes to reiterate that the playing field has changed dramatically. Companies must be prepared to ensure the interests of consumers, and avoid selling troubled products such as yuan-linked target redemption forwards, he said.
However, Tseng said that the commission is aware of unhealthy price competition employed in the domestic insurance sector.
“We are aware that some policies are being sold below cost; whether they are the work of insurers or their intermediaries, such as insurance brokers, there will be consequences,” Tseng said.
As a result, the regulator plans to step up monitoring of monthly updates by financial institutions, and would to launch probes if necessary, Tseng said.
Tseng said that IMF managing director Christine Lagarde had warned of widening spillover risk, and that disruption in one Asian market can rapidly affect other markets in the region and the rest of the world.
The TAIEX yesterday recovered from early losses to close above the 8,000-point mark. Last week, the TAIEX slid before regaining its foothold to finish above the 8,000-point benchmark.
The local bourse gained 155.74 points on Monday, slid by 157.36 points on Tuesday, and dipped below 8,000 points before closing 0.22 percent higher at 8,035.29 points yesterday.
Yuanta Securities Investment Consulting Co (元大投顧) yesterday recommend investors to raise their risk appetites, after the TAIEX rebounded from a potential bottom of 7,203 points.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
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