Securities Firms Hope for Easing of Financing Ratio to Net Worth; Taiwan Stock Exchange: Solution in 2-3 Months
Amidst a buoyant Taiwanese stock market, the Securities Association has proposed raising the financing limit for securities firms from 4 times to 6 times their net worth. The Taiwan Stock Exchange announced that it is currently discussing the proposal with industry players and aims to provide a solution within 2 to 3 months, considering various factors.
📋 Article Processing Timeline
- 📰 Published: May 11, 2026 at 15:00
- 🔍 Collected: May 11, 2026 at 15:31 (31 min after Published)
- 🤖 AI Analyzed: May 11, 2026 at 19:43 (4h 11m after Collected)
Central News Agency (Taipei, May 11) - With the active Taiwanese stock market, the Securities Association has proposed that the limit on the total amount of financing, currently not exceeding 4 times net worth, could be increased to 6 times. Legislators are concerned about when the research results will be released. The Taiwan Stock Exchange (TWSE) stated today that more factors must be considered, and discussions are still ongoing with industry players, hoping to provide a solution within 2 to 3 months.
The Legislative Yuan's Finance Committee today reviewed the Financial Supervisory Commission's (FSC) 2026 budget proposal and conducted interpellations. According to current FSC regulations, the sum of three businesses – securities firms' credit trading financing, securities business loans, and unrestricted purpose loans – cannot exceed 4 times the securities firm's net worth.
Given the recent active stock market, Democratic Progressive Party legislator Li Kunchang expressed concern that many investors are using ETFs as collateral to re-invest in the stock market. Regarding the Securities Association's suggestion to relax the multiple of financing amount to net worth, he also questioned external concerns about whether securities firms are facing saturated lending levels, running out of funds, or increasing interest rates.
Peng Jinlong pointed out that the industry indeed submitted suggestions through the regulatory adjustment platform, and the TWSE is currently researching them. The current regulations state that the total financing amount for securities firms cannot exceed 4 times their net worth, and the industry average level is about 1.6 times, which has not yet reached the upper limit.
TWSE Chairman Lin Hsiu-ming added that currently, no securities firms are desperately looking for money, and all firms have a certain amount of room before reaching the upper limit. Given the relatively active securities market recently, industry players hope to have more room to undertake business. The TWSE is currently discussing with the industry and must consider more factors holistically, evaluating to provide a direction within 2 to 3 months. (Editor: Pan Yijin) 1150511
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The Legislative Yuan's Finance Committee today reviewed the Financial Supervisory Commission's (FSC) 2026 budget proposal and conducted interpellations. According to current FSC regulations, the sum of three businesses – securities firms' credit trading financing, securities business loans, and unrestricted purpose loans – cannot exceed 4 times the securities firm's net worth.
Given the recent active stock market, Democratic Progressive Party legislator Li Kunchang expressed concern that many investors are using ETFs as collateral to re-invest in the stock market. Regarding the Securities Association's suggestion to relax the multiple of financing amount to net worth, he also questioned external concerns about whether securities firms are facing saturated lending levels, running out of funds, or increasing interest rates.
Peng Jinlong pointed out that the industry indeed submitted suggestions through the regulatory adjustment platform, and the TWSE is currently researching them. The current regulations state that the total financing amount for securities firms cannot exceed 4 times their net worth, and the industry average level is about 1.6 times, which has not yet reached the upper limit.
TWSE Chairman Lin Hsiu-ming added that currently, no securities firms are desperately looking for money, and all firms have a certain amount of room before reaching the upper limit. Given the relatively active securities market recently, industry players hope to have more room to undertake business. The TWSE is currently discussing with the industry and must consider more factors holistically, evaluating to provide a direction within 2 to 3 months. (Editor: Pan Yijin) 1150511
Choose to stand with facts; every sponsorship you provide is a force for protecting press freedom.
Download the Central News Agency "First-hand News" APP to instantly grasp the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.