Related government agencies will integrate the resources of state banks and public funds, totaling NT$300 billion in scale, to bolster the languid stock market via coordinated investment strategy, according to the program for bolstering the stock market being drafted by the Executive Yuan (the Cabinet).
The coordinated investment strategy will amplify the effect of the government-related funds in vitalizing the stock market, in sharp contrast to the diversified power of the existing practice under which various government-related funds invest in the stock market according to their own strategies. Meanwhile, the Financial Supervisory Commission (FSC) will induce massive life insurance funds to invest in the stock market via policy instruction, injecting additional vitality to the market.
Vice Premier Jiang Yi-hua noted yesterday (Nov. 25) that the Executive Yuan (the Cabinet) has instructed the FSC to enhance the investment performance of the major public funds in the short term. Chang Sheng-ford, minister of finance, also pointed out that to avoid contradiction of investment strategies among public funds, government units in charge can meet to coordinate their investments beforehand.
The government is endeavoring to bolster the stock market via three channels, the national security fund under the charge of Vice Premier Jiang Yi-hua, the “task force for elevating the investment performance of public funds” set up jointly by the Executive Yuan and the Examination Yuan, and “program for bolstering the stock market,” overseen by Kuan Chung-ming, minister without portfolio.
At present, state banks and the four major public funds still have NT$300 billion of fund at their disposal for investing in the stock market, including NT$50-60 billion owned by state banks and over NT$200 billion possessed by the four major public funds. The insurance funds still have NT$3 billion on hand for stock investment.
Hsieh Chi, chairman of Taiwan Stock Exchange, supported the integration of the investment strategies of public funds, which will contribute to the achievement of steady investment returns in the long run.