Stimulus package offered by Cabinet for stock market

Staff writer, with CNA

Mon, Mar 04, 2013 - Page 14

The Executive Yuan aims to add 85 new listed companies to the main board of the stock exchange and the over-the-counter (OTC) market in a bid to stir up investors’ buying interest and boost market turnover, according to the contents of a Cabinet stock market stimulus package.

In the stimulus package, approved by the Cabinet on Friday, the government is planning to come up with a wide range of measures to encourage companies to list on the main board or on the OTC market.

In particular, the government plans to continue its efforts in high-tech development to create an environment suitable for companies that have good innovation and to encourage them to raise funds on the local capital markets.

The government also wants companies in the cultural and creative sector to trade their shares on the local bourse, a move that is expected to provide investors with more investment instruments.

Among the expected 85 newly listed companies, the government aims to attract about 30 foreign quality companies to launch listings in Taiwan, the package showed.

As of the end of January, a total of 810 companies were listed on the Taiwan Stock Exchange, while shares of 638 firms were traded on the OTC market.

Meanwhile, to push for “T-share” listings on the local bourse, the government will boost cooperation between securities authorities on both sides of the Taiwan Strait, the package said.

“T-shares” refer to companies incorporated in China, such as those that are wholly or partly owned by Chinese investors and those that are owned by Taiwanese investors operating in China.

Meanwhile, the government will study how to introduce more financial products to the local market to encourage more investors to trade.

Under the stimulus package, the government is determined to strengthen corporate governance and to help local listed companies secure better credit ratings from international credit rating firms.