(Central News Agency, reporter Pan Ziyu, Taipei, 10th) Amid the investment热潮 in Taiwan's stock market, the 'four-loan strategy' phenomenon has recently become a topic of discussion, with lawmakers questioning potential systemic risks. In response, Central Bank Governor Yang Chin-long stated on the 10th that while the flow of funds into the stock market is indeed faster than before, and the Financial Supervisory Commission (FSC) is closely monitoring the situation, he personally believes the current situation is 'still far from a systemic risk.'

The 'four-loan strategy' refers to investors simultaneously using mortgages, car loans, credit loans, and stock margin loans to enter the market. Democratic Progressive Party (DPP) Legislator Kuo Kuo-wen questioned at the Legislative Yuan's Finance Committee on the 10th whether the government should consider establishing an integrated monitoring mechanism for funds flowing into the stock market via this strategy to prevent systemic risks.

Yang, attending the Finance Committee meeting, stated that the FSC is closely monitoring the situation, but based on his current observations, 'it is still far from a systemic risk.'

Kuomintang (KMT) Legislator Lai Shyh-bao asked whether Taiwan's stock market has become a 'cash machine' for foreign investors, given the recent large-scale selling by foreign capital.

Yang responded that due to Taiwan stocks' generous dividends, 'foreign investors are very interested in Taiwan stocks.' He explained that with the market index at a high level, it is natural for the scale of foreign capital inflows and outflows to increase. He noted that while foreign investors have remitted at least US$5 billion out of Taiwan since June, 'US$5 billion is not high' for them.

Furthermore, he commented on the recent market correction, stating, 'I believe it is healthy,' adding that 'a stock market cannot only go up; it must also go down.' (Editor: Pan Yi-ching) 1150610

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  • Source: CNA (Central News Agency)
  • Category: Taiwan