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🇹🇼 Taiwan /Economy & Trade

Taiwan Stock Market's Sharp Volatility Prompts National Stabilization Fund Response

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Taiwan's stock market has experienced significant volatility, with the index briefly falling below 40,000 points.
  • The National Stabilization Fund's executive secretary stated they are closely monitoring domestic and international economic conditions.
  • The fund will intervene appropriately if there are any disorderly market situations, adhering to its strict entry conditions.

Taiwan's stock market is undergoing sharp fluctuations, prompting public attention on the National Stabilization Fund's potential intervention. The index briefly dipped below the 40,000-point mark, raising concerns among investors.

Finance Ministry Vice Minister and National Stabilization Fund Executive Secretary Ruan Ching-hua addressed the situation at a legislative hearing. He emphasized that the fund has specific conditions for intervention, including major domestic or international events impacting market confidence or signs of market disorder. Ruan noted that past interventions, such as during the COVID-19 pandemic, the Russia-Ukraine war, and US-China trade tensions, were in response to exceptional circumstances.

If there are disorderly situations, we will take appropriate action

— Ruan Ching-huaThe National Stabilization Fund's executive secretary assured that the fund would intervene if market conditions became disorderly.

"Generally speaking, we do not intervene in the market; there are ups and downs," Ruan stated, explaining that the current volatility is linked to global market trends. He assured that the fund is closely monitoring the economic and political landscape, both domestically and internationally. "If there are disorderly situations, we will take appropriate action," he added.

The hearing also focused on broader economic issues, including equitable distribution of economic gains and maintaining the development momentum of non-semiconductor industries. The recent market turbulence highlights the interconnectedness of Taiwan's stock market with global economic forces.

Generally speaking, we do not intervene in the market; there are ups and downs

— Ruan Ching-huaHe explained the fund's usual hands-off approach to market fluctuations.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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