Turnover on Taiwan’s stock market is likely to increase this year. That’s the word from the chairman of the Financial Supervisory Commission (FSC), William Tseng, on Monday.
Tseng told lawmakers that the increase will be a result of increased transparency in Taiwan’s transaction system, after several steps are taken this year to boost the economy.
In order to bring the system in line with international standards, the FSC will begin allowing day trading in 416 different stocks, starting on June 1. The FSC has also agreed to widen the current daily share price fluctuation limit from 7% to 10%.
Tseng said there was 20% growth in turnover on Taiwan’s stock market last year and it is likely to increase further in 2015. However, he said the sentiment of individual investors has curbed the momentum needed for the TAIEX to reach the 10,000-point mark.
“Individual investors used to make up 80% of all investors," said Tseng. "The latest statistics, however, show that the figure has dropped to 60%. [Also], the TAIEX is around 9,600, a level that most individual investors consider quite high. It will affect turnover if they do not want to trade.”