Financial Supervisory Commission (FSC) Chairman Tseng Ming-tsung announced Tuesday a series of new measures, known as FSC’s 4th arrow, designed to stimulate trading volume among domestic investors. Tseng was seeing a likely 3-5% percentage growth in stock market turnover within six months after new measures take effective on November 11.
Under the eased rule, the ceiling on margin loans for stocks traded on GRETAI Securities Market will be lifted to 60 percent from 50 percent now. Upper limits for securities financing from stock brokers for securities lending and borrowing on TWSE will be lifted to NT$80 million from NT$60 million now and to NT$60 million from NT$40 million now, respectively. However, relaxation in credit restriction won’t be applicable to foreign investors.
According to TWSE’s data, the average daily turnover was NT$113.7 billion in August and NT$101.1 billion in September. Also, the TWSE will conduct more investor conferences for listed companies in the fourth quarter to bolster investments.