• Directory of Taiwan

Talk of the Day - News digest of local media - Money operators

Talk of the Day - News digest of local media -  Money operators

Taiwan's Central Bank reiterated a warning Tuesday to hot money operators, demanding that foreign institutional investors get their idle funds out of Taiwan. To curb the free flow of hot money and stem the appreciation of Taiwan's currency, the Financial Supervisory Commission last Nov. 10 had already banned foreign investors from putting money in various types of deposit account.
The following is a digest of some local media reports on the issue: United Daily News: As hot money inflow has continuously pushed up the exchange rate of the New Taiwan dollar, the Central Bank invited executives of several local and foreign banks to a "tea party" Tuesday, advising that "if the funds are not invested in the local bourse they should be moved out of Taiwan." Under close supervision by monetary regulators, the New Taiwan dollar closed at NT$31.86 against the greenback, up NT$0.038 from the previous day. The Central Bank told the press upon close of trading that it advised all banks to reinforce their risk controls and expected to reduce speculation in foreign exchanges.
Commercial Times: The Central Bank's position Tuesday that no speculative funds from abroad are welcome led to an impressive net-buy volume on Taiwan's stock market by foreign investors on that day, as foreign institutional investors were net buyers of NT$12.11 billion-worth of shares.
While it seems that the foreign institutional investors were forced to channel their money into the stock market, actually they must have carefully calculated and foreseen the profit. Last Oct. 16, when Central Bank Governor Perng Fai-nan warned against idle funds, foreign investors that day were net buyers of NT$21.5 billion-worth of shares. The weighted index of Taiwan's stock market has since continued to climb from between 7,500 and 7,700 points to exceed 8,200 points. Many foreign investors have forecast that the index will stand at between 9,000 points and 9,500 points in the first quarter of 2010.
Meanwhile, Perng has expressed the wish to exchange views with legislators on monetary supervision, and some legislators have suggested that Perng is seeking support from the legislature in preparation to playing tough against speculation funds.
Economic Daily News: With A total of 6.52 billion shares changing hands on market turnover of nearly NT$200 billion, Taiwan's stock market was boosted by foreign institutional investors at the beginning of the new year. Apparently, Central Bank Governor Perng Fai-nan's advise is being heeded.
(By Lillian Lin)

Updated : 2021-10-24 07:20 GMT+08:00