TAIPEI -- Taiwan's financial regulator will raise the daily fluctuation limit for stock prices to 10 percent from June 1, two months ahead of schedule, it announced on Tuesday.
The new measures, previously slated to take effect by August 3, loosen the maximum upward or downward trading limit for stocks on the main board and on the over-the-counter market from the current 7 percent.
The daily fluctuation limit for futures and options prices will also be raised to 10 percent. The current 7-percent limit has been implemented since 1989.
The easing aims to encourage investors to buy into small and medium cap stocks and brings the Taiwan stock market in line with the Shanghai and Shenzhen stock exchanges on the Chinese mainland.
Tseng Ming-chung, chairman of the Financial Supervisory Commission, said last month that such new measures are expected to boost the stock market's turnover by 10 percent by the end of this year.
