Student protest impacts equity market: FSC head
April 4, 2014, 12:10 am TWN
TAIPEI -- The chairman of the Financial Supervisory Commission said yesterday that the ongoing student protest against a trade in-services pact with China has affected the local bourse's performance.
Although the local bourse posted has gained after the students began their occupation of the Legislative Yuan's main chamber March 18, the Taiwan market performance has lagged behind other regional markets, said Tseng Ming-chung.
He noted that the Taiwan market has gained about 1.99 percent since March 18, but lags behind a 3.5 percent-4.5 percent increase posted by the markets in Singapore, South Korea and Hong Kong during the same period.
The regional equity markets have been generally driven by a rise in fund inflows on expectations that the U.S. Federal Reserve will continue to maintain ample liquidity.
Tseng said that judging from the statistics, it is indisputable that the student protest has had a negative impact on the local bourse by capping gains in share prices. Investors have a full understanding of the impact, he said.