Reuters logo
UPDATE 2-Taiwan to regulate research reports in August to limit manipulation
July 31, 2014 / 6:10 AM / in 3 years

UPDATE 2-Taiwan to regulate research reports in August to limit manipulation

(Adds time frame, comments from financial regulator, updates markets)

By Faith Hung and Miaojung Lin

TAIPEI, July 31 (Reuters) - 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 said.

“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 investors’ rights.”

“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 companies.

Foreign investors, which account for about one-third of Taiwan’s market capitalisation, rely on research reports to trade.

“The more tightening, the worse for stocks,” said Chang Chi-sheng, a fund manager of Uni-President Asset Management, Taipei. (Editing by Miral Fahmy and Jacqueline Wong)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below