Tuesday, December 21, 2010

Asian pension funds the government intends to use the rescue.

<P> Asian stock markets and continued volatility in currency markets may create the conditions for government intervention in the market. .Recently, several state officials have called for use of government-run pension funds to provide support for the market in Japan has raised a series of measures to boost market sentiment recommendations. .</ P> <P> It is reported that Japan set up the first sovereign wealth fund, has entered the post-consultation. .The fund, once established, the most likely choice to start initial investment in the domestic stock market. .</ P> <P> However, the current forecast of capital control measures to be taken by the Government is still too early. .After all, many Asian countries because of the past have taken similar measures, or tried to use the so-called automatic suspension of trading mechanisms suffer. .</ P> <P> hearing, according to http:// addition, before embarking on capital control measures may also lead to market panic. .Therefore, the Government may take measures to increase government funds the operation of the market dynamics, and may introduce some tax relief to encourage investment in the stock market policy. .</ P> <P> several Asian countries last week, government officials have made a speech, urged investors to remain calm and strongly emphasized the country's market and economic fundamentals remain sound. .</ P> <P> many government officials come forward to call </ P> <P> MOFE official Jinxi Dong the first time last week said the government would do its utmost to help restore stability in the stock market. .He added that the government pension fund to start earlier than originally planned to buy Korean stocks. .</ P> <P> in Tokyo, the ruling Liberal Democratic Party, some of the Members called on the government tax on stock transactions, and ease the already loose monetary policy. .</ P> <P> adopted these proposals is unlikely, but the Bank of Japan will be held in March to identify candidates to succeed retiring Governor Toshihiko Fukui before, these programs have made it deep meaning, that the Bank of Japan .Relax on the interest rate issue has been increasing political pressure to bear. .</ P> <P> course, the government is unlikely to sit back and watch the market fall. .In Asia, governments use the state-run pension funds have been common. .Fall in the market, use government rescue fund to buy shares of the blame, in addition, some governments may also be through the timely use of funds to improve their reputation. .On the other hand, too much activity in the market will be difficult to get out. .</ P>.

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