The Financial Supervisory Commission (FSC) is preparing to deal with the impact Taiwanese MSCI stocks may feel if the MSCI index begins including Chinese stocks. That’s the word from commission Chairman Ding Kung-wha on Wednesday.
The MSCI index is a stock index managed by Morgan Stanley Financial Services. Stock experts predict that the MSCI will begin including Chinese class A stocks as early as mid-June. There are worries that the move might affect investment in existing Taiwanese MSCI stocks since investors are more likely to invest in stocks from China.
On Wednesday, Ding responded to questions about the possible move at the legislature. He said the FSC will set up a team of experts to deal with the impact the move could have on Taiwanese stocks. Ding also said if there is a sharp drop in international capital flowing into Taiwanese stocks, they hope that investments from within Taiwan would make up the difference.