(Adds time frame, comments from financial regulator, updates
By Faith Hung and Miaojung Lin
TAIPEI, July 31 Taiwan's financial regulators
said they will ban foreign and local brokerages from giving
target prices for individual stocks to the media from next
month, a step aimed at preventing market manipulation.
The ban will be among a new set of rules which will also
require the media to clearly attribute research reports. If
brokerages need to clarify media reports, they must do so via
the stock exchange website, the Financial Supervisory Commission
"Brokerages from time to time pass their reports to media in
an indirect way to manipulate stock prices," FSC Chairman
William Tseng told a news briefing. "We want to protect
"The most important thing is for brokerages not to give
their target prices to media," added director general Y. C. Wu
of the Securities and Futures Bureau.
Wu said the new rules would be implemented in mid-August.
The Economic Daily newspaper, which first reported the
rules, said they were aimed at increasing access to the research
reports and stock ratings published by foreign brokerages, which
are now only allowed to give such information to their clients.
The news sent Taiwan's stock market index down 1.4
percent to its lowest closing level in a month, with some
brokers saying the rules would limit foreign investment, as some
brokerages would be reluctant to publish reports about Taiwanese
Foreign investors, which account for about one-third of
Taiwan's market capitalisation, rely on research reports to
"The more tightening, the worse for stocks," said Chang
Chi-sheng, a fund manager of Uni-President Asset Management,
(Editing by Miral Fahmy and Jacqueline Wong)