Most institutional investors remain confident in Taiwan’s stock market, despite looming concerns including China’s slowing economic growth momentum, a potential interest rate hike in the US and rising volatility in global markets, the Financial Supervisory Commission (FSC) said yesterday.
The remarks came after the commission gathered representatives from 43 foreign and domestic brokerages and securities investment trust companies to hear its briefing on the current market situation.
The companies told the commission that given the lack of runaway systemic risk and largely sound fundamentals, recent tumbles on the TAIEX were overdone.
In addition, the representatives said they had seen signs of optimism, as most investors did not rush to redeem their mutual funds linked to Taiwanese shares and fund managers also did not sell off positions in droves. Rather, some fund managers had been weighing in on blue-chips when appropriate, they said.
The commission told reporters after the meeting that it had received a list of suggestions from the industry representatives.
The commission has pledged to work toward resolving issues surrounding the capital gains tax on securities investment and other related tax issues, it said.
In addition, the commission has agreed to relax stop-loss requirements for securities investment trust companies and brokerages, while stock positions purchased by dealers at brokerages might be booked under the financial assets available for sale category, the commission said.
Separately, the commission yesterday approved CTBC Financial Holding Co’s (中信金控) plans to acquire a 100 percent stake in Taiwan Life Insurance Co (台灣人壽保險) through a share-swap.
However, the commission fined CTBC Bank Co (中國信託銀行) NT$3 million (US$91,547) as it was discovered that one of its employees had committed bank fraud by transferring funds from a client’s accounts after gaining their Web banking password.
The employee had also terminated clients insurance policies and had received cash from clients in a personal capacity, racking up several infractions of the Banking Act (銀行法).
The commission has ordered the bank to sack the employee.
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