Investor funds moving away from property: regulatory chief
March 13, 2014, 12:10 am TWN
TAIPEI--Tseng Ming-chung (曾銘宗), chairman of the Financial Supervisory Commission (FSC), said Wednesday there are signs that investor funds are moving out of the property market into equity markets.
Among the signs were statistics released by the Ministry of Finance (MOF) on Tuesday showing that growth in revenue from certain property transaction-related taxes slowed or even turned negative in the first two months of the year.
According to the MOF statistics, revenue from the land value increment tax rose 13 percent in the two months from the same period a year earlier, but the growth was down from the 51 percent annual growth seen in the first two months of 2013.
The statistics also showed deed tax revenue in the two month period falling 3.1 percent from a year earlier.
At the same time, revenue from the securities transaction tax grew 27.5 percent year-on-year in the first two months.
The increase reflected higher daily turnover on Taiwan's main exchange and over-the-counter (OTC) market over the two-month period, when it averaged over NT$120 billion (US$3.97 billion) per session, up from NT$93.7 billion during the same period a year earlier, according to MOF figures.
Tseng said average daily turnover has expanded since the FSC — Taiwan's top financial regulator — relaxed rules on day trading (buying and selling a stock in the same session) on Jan. 6.