Research into the sale of a vaccine manufacturer in Taiwan has revealed a number of problems

An investigation into the sale of Taiwan’s Covid-19 vaccine manufacturer has raised serious concerns about the country’s financial system and has disrupted the administration of President Tsai-ing Wen.

The Taipei Prosecution Office in the Shilin District told the Financial Times that it was investigating the Medigen Vaccine Biologics Corporation after the company jumped 20% in a few days before announcing the positive results of its vaccine trial in the second phase in June. The prosecutor declined to comment further.

Last month, Tsai spoke on television as he denied allegations by political opponents that his government had banned imported vaccines to raise the price of Medigen groups.

The investigation also opens up another way in which Tsai’s opponents could oppose the President as he seeks to counter Chinese pressure.

Only 8.2 percent of Taiwanese people have received their first jab, and the government has approved the purchase of a 5m vaccine from Medigen in response to Taipei’s declaration of China blocking the purchase of foreign products.

“We have conducted an internal investigation, and there is no evidence of any government or official think [on] property, ”said Tsai in a statement. Taiwan’s finance ministry later said no eight state-owned state-owned banks had bought Medigen assets before the collapse.

Tsai urged citizens to beware of false stories about vaccination, which circulated in Taiwanese newspapers when the country plunged into a quagmire due to a domestic epidemic in early May.

But the study has highlighted the growing shareholding of shares in Taiwan, where financial regulators often lack the legal capacity to address these issues. “The Medigen case is a very political one,” said Wang Wen-Yeu, a professor of law at major markets at National Taiwan University. “But the internal trade system has spread to Taiwan.”

Wang pointed to a well-known case involving Ko Wen-chang, a former chairman of Hewlett-Packard Taiwan. Ko was sentenced in 2015 to nine years in prison after buying goods from a Taiwanese company that he knows is owned by a large US company.

Lin Shu-Yu, an expert at brokerage CLSA, added that “every investor knows that trading the interior and selling stocks is difficult”. He also said that in small registered companies it is not uncommon for co-workers, fundraisers and journalists to buy shares with brokers of relatives and friends before releasing positive financial results.

“People have no confidence in the government being able to run the project,” Lin added.

Some of the problems stem from Taiwan’s Finance Committee’s lack of control over domestic business, lawyers say.

Instead, the cases are referred to local prosecutors who “have no legal fees”, Wang said.

Wu Huan-Ting, a California lawyer, Nolan Barton and Olmos, says the risk of internal sales is not less than 40%.

Officials say the Taiwanese approach requires a lot of weight.

“There are some problems with domestic trade in Taiwan, but I don’t think it’s very difficult compared to other countries,” said Cindy Chang, chief executive of the Securities and Futures Investors Protection Center.

Others point to the difference between Taiwan’s financial sector and its technology companies, which control it directors.

“Taiwan’s financial market is still in its infancy,” said Wang, a professor of law. “He’s left behind in technology – it’s about disrespect.”

Medigen did not respond to a request for comment.