[Segnalato dal giornalista di Taiwan Wake News Jian Jiayou a Taipei]The Air Restriction Order is a double-edged sword! When FSC Chairman Huang Tianmu approached the Legislative Yuan for investigation on the 12th, lawmakers asked whether the FSC’s extended air restriction order on 11 was effective and whether it would lead to a reduction in the volume of transactions? Huang Tianmu replied that the trading volume of the stock market will indeed be affected, but may delay the decline of Taiwan’s shares, stressing that the aim is “to stabilize the market and investor confidence”.
Double-sided blade with air restriction
After Taiwan’s stock market fell nearly 600 points on the 11th, it once fell below the 13,000 mark at the start of trading on the 12th. The Financial Supervisory Commission announced on the 11th to expand the order of air restriction. average daily volume of transactions in the first 30 working days, further reduced to 10%; in addition, the stock lending margin ratio was adjusted from 100% to 120%.
Kuomintang lawmaker Lin Defu said the FSC will expand the air restriction order and is the onion peeling strategy effective in saving Taiwanese stocks? Huang Tianmu replied that the rescue measures will be “gradually approached”. When Taiwan’s stocks don’t work well, the measures will be more intense. Now the spread of negative sentiment in the market does not know how long it will last and it will continue to be observed.
Lin Defu asked, will the trading volume on the stock exchange shrink due to the air restriction order? Huang Tianmu also said: “Everything must have a dilemma and the transaction volume will indeed be affected, but at least more than 200 billion on the 11th, the transaction volume will be less when space is limited.” measures are within thinking, after all This has never happened before The government has introduced relevant measures in hopes of stabilizing the market and investor confidence.
Only the life insurance sector is eligible for redistribution
In addition, the life insurance industry is facing an equity crisis and the FSC commits to reclassify financial assets in accordance with the IFRS9 Bulletin. Huang Tianmu revealed in the Legislative 12 Yuan survey that there are 4 life insurance companies that want to reclassify assets, involving 17.18 million policyholders. Total assets account for 46.76% of the overall life insurance sector and the premium market share is also up to 41.9%.
Guo Guowen, a lawmaker with the Democratic Progressive Party, said why only the life insurance sector can carry out asset reclassification, but not other sectors such as banking? Huang Tianmu replied that the U.S. eagle-style interest rate hike impacts many businesses, but old international financial reporting standards have led to a mismatch between assets and liabilities and it is impossible to faithfully present fair values. . Currently, only the life insurance sector is suitable for the reclassification of assets.
Guo Guowen also said that these life insurance companies cannot be allowed to arbitrarily transfer financial risks. In the future, these reclassified companies should be strictly controlled when raising funds in the public capital market via IPO (initial public offering). Huang Tianmu said some companies have already been rigorously scrutinized when they want to IPO and agreed to say “then they will be scrutinized”.
