Cabinet reshuffle gives a boost to financial sector

Staff writer, with CNA

Wed, Jul 31, 2013 - Page 14

The financial sector posted gains yesterday after the government launched a Cabinet reshuffle that included installing a new chairman of the Financial Supervisory Commission (FSC), dealers said.

Vice Minister of Finance Tseng Ming-chung (曾宗銘) is to replace Chen Yuh-chang (陳裕璋) as chairman of the commission, with some analysts expecting Tseng to be more aggressive in pushing for financial market liberalization, dealers said.

The financial sub-index closed up 0.97 percent yesterday, while the TAIEX ended up 0.98 percent.

“Tseng is known for his close ties with the financial market... many investors now have high hopes that the commission will be better able to keep a finger on the pulse of the market and devise new policies to meet market needs,” KGI Securities (凱基證券) analyst Eason Lee said.

Tseng has also been serving as executive secretary of the National Stabilization Fund, which is mandated to deal with any economic or non-economic factors that may disrupt the local bourse.

Tseng has previously served as head of the FSC’s Inspection Bureau, deputy director of its Banking Bureau and president of Taiwan Cooperative Bank.

“Tseng’s credentials in the financial market have prompted many investors to think he will move faster than his predecessor in liberalizing the market to expand financial exchanges across the Taiwan Strait,” Lee said.

Lee said the financial sector has lagged behind the broader market for some time, meaning stocks in the sector have been attractive to investors.

Among financial stocks that gained, Cathay Financial Holding Co (國泰金控) added 2.09 percent at NT$43.9 and Fubon Financial Holding Co (富邦金控) rose 1.59 percent to NT$41.45.