TAIPEI, Taiwan — The Central Bank of Taiwan has enacted measures to bolster investor confidence in the battered stock market after the Taiwan Stock Exchange index hit a 20-month low last weekend.
The bank said it approved a Securities and Exchange Commission proposal to increase upper lending limits for those who borrow funds or stocks to invest in the stock market.
The bank also said that it will permit four mutual fund companies to raise more funds from overseas investors who want to invest in Taiwan stocks.
In another move, the bank announced that it will allow Sumitomo Life Insurance of Japan to invest $30 million in the stock market. In recent weeks, the bank has approved a number of applications from foreign financial institutions that want to buy Taiwan stocks.