A plan proposed by Taiwan’s top financial regulator to allow wider share price fluctuations in the local stock market is welcomed by the market.
In December, the Financial Supervisory Commission said that it has been planning to expand the range stock prices can fluctuate in a single trading session from the current 7% to 10%. The commission also said on Friday that the relaxation plan will not be realized until mid-2015.
Analysts said on Saturday that the relaxation means that the local equity market will face fewer restrictions and the market can move in a healthier way. They also said bigger share price fluctuations can boost globalization of the local stock market.
Taiwan’s current 7% range is well below the level seen elsewhere in Asia. China limits its daily stock price fluctuations to 10%, South Korea to 40%, and Japan to between 14% and 30%, while Singapore and Hong Kong do not impose any limits on daily price changes.