Want China Times
Taiwan stocks have gradually warmed up, hitting the benchmark 10,000 points for two consecutive days with the share prices marking a 15-year high, but most stock investors are indifferent, with turnover reaching only NT$130 billion (US$4.2 billion), claimed to be the coldest 10,000-point performance. Stocks in the mainland last week hit a record 1.8 trillion yuan (US$290.1 billion) in turnover, marking a new record for the world’s single-day stock market turnover, which suggests that something is ailing the Taiwan stock market.
The mainland has seen a heated stock market, boosted by a series of financial reforms which have boosted the confidence of global stock investors. The reforms, including the push for the internationalization of the renminbi, the implementation of the Shanghai-Hong Kong Stock Connect and the opening of more free trade pilot zones, have caused accelerated cross-border fund flows and stimulated the development of the mainland capital market. Although the mainland currently still adopts strict controls of its capital accounts and has lagged behind in the marketization of interest rates and foreign exchange rates, the market has anticipated China will gradually abolish its control measures and anti-market rules in line with international operations. [FULL STORY]