Taiwan's Securities and Futures Commission is quietly discouraging fund managers from launching new bond funds, according to several sources in Taipei. One fund manager believes the SFC is telling firms it will no longer approve applications for new bond funds SFC officials deny that, but acknowledge they are concerned about the explosion of these funds in a market where the supply of high-quality debt is small.
The regulators are said to be concerned that some domestic houses are ramping up their assets under management and creating a bubble. Some players speculate this is a play to make these businesses look attractive to potential foreign acquirers, but at the risk of investing increasing amounts in low-quality...
