The number of investors with brokerage accounts increased by 442,570 in the first eight months of this year, boosting the total accounts to 11.015 million, an all-time high, the Taiwan Stock Exchange (TWSE) said yesterday.
About 46 percent of the nation’s population had accounts, TWSE data showed.
The number of investors who traded in local shares advanced to 2.3 million as of the end of last month, an increase of 659,636 from the end of last year, which the TWSE said was a reflection of wider interest in stock trading from new and long-time investors.
Among them, domestic individuals made up 61.2 percent in the first eight months, the highest ratio over the past five years, followed by the foreign institutions at 26.4 percent and domestic institutions at 12.3 percent, the data showed.
With many investors having more than one account to allow flexibility, the number of brokerage accounts expanded to 20.11 million as of the end of last month, the data showed.
“Many young investors opened accounts this year. Some of them preferred investing to saving due to a low interest rate environment, while others might have been attracted by the booming equity market,” a TWSE official told the Taipei Times by telephone.
With odd-lot trading to launch next month — allowing purchases of shares in quantities of less than 1,000 during regular trading sessions — an influx of young investors is expected, as they typically do not have enough money to buy blue chips, the official said.
In related news, the Financial Supervisory Commission (FSC) approved a TWSE plan to introduce a market-making system by June next year to improve market liquidity for shares of companies that are financially sound, but unpopular among investors.
The FSC set three criteria for the selection of the special shares: companies must have been listed on the TWSE for at least one year; their shares must have lower-than-average turnover and volatility; and the firms must be profitable, with earnings per share of at least NT$2 and dividends paid out, Securities and Futures Bureau Deputy Director-General Tsai Li-ling (蔡麗玲) told a news conference in New Taipei City.
The TWSE is expected to announce eligible companies next year, while brokerages — which would serve as market makers — could freely choose which shares to trade, Tsai said.
Eight brokerages have expressed an interest in being a market maker, which would gain benefits such as reduced handling fees, she said.
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