The Financial Supervisory Commission (FSC) is studying the feasibility of widening the current daily price fluctuation limit of stocks from 7% to 10%. That was the word from FSC Chairman William Tseng on Monday.
“The percentage of individual investors has been decreasing from 80% to 60%," said Tseng. "The current daily price fluctuation limit of stocks is 7%; China has set the limit at 10%, Korea at 15% and is planning to widen it to 30%. Thailand and Malaysia are at 30%, while Singapore and Hong Kong have no limit on stocks’ daily fluctuation range. So we are doing a feasibility study and trying to ease the limits.”
Taiwan’s chief financial supervisor said the commission will work with the Taiwan Stock Exchange and the GRETAI Securities Market to draft measures to ease certain stock trading rules by the end of January in order to boost stock market volumes.
The last time the government widened the daily upward and downward limit was from when it increased the limit from 5% to 7% in October, 1989.