Breaking News, World News and Taiwan News.

Q1 money supply indicator data exciting news for market uptrend

TAIPEI, Taiwan -- The annual growth of M1B and M2 — two major money supply indicators — rebounded to 9.14 percent and 5.82 percent in the first quarter, promising a continued influx of foreign funds and an uptrend in the share market.

The Central Bank's data showed that, in the first quarter of this year, the annual growth of M1B was 9.14 percent and M2 grew 5.82 percent, with the former remaining higher than the latter for 18 consecutive months before March.

In the same quarter, the net inflow of foreign funds totaled US$4.77 billion, almost double last year's corresponding figure of US$2.428 billion.

Chen E-dawn (陳一端), deputy head of the central bank's economic research department, indicated that first-quarter M2 growth of 5.82 percent is nearing the upper edge of the target annual growth of 2.5-6.5 percent. Analysts say this presages a situation in which the share market will remain awash in liquidity.

The annual growth of M1B and M2 rebounded to 8.87 percent and 5.89 percent respectively in March due mainly to a massive net inflow of US$3.247 billion in foreign funds, according to the Central Bank.

In March the annual growth of M1B was higher than that of M2 for the 18th consecutive month since October 2012, forming the so-called “golden cross,” with the gap between the two reaching 2.98 percentage points, down 0.02 of a percentage point from a month earlier.

At the end of March the outstanding Taiwan dollar (NT) deposits held by foreigners in the banking system in Taiwan came to NT$204.1 billion and the outstanding value of stock accounts increased by NT$42.3 billion from a month earlier to NT$1.3585 trillion, a new high in two years.

Thanks to the sharp rise in renminbi deposits in March, Taiwan's foreign exchange reserves grew to about NT$3.68 trillion at the end of the month for a monthly increase of NT$144.3 billion, the Central Bank said.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
WSJA
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search