The Taiwan government has taken a proactive step to support the local stock market by activating the NT$500 billion National Stabilization Fund. This decision comes after the market experienced significant declines due to the impact of new import tariffs imposed by US President Donald Trump. The Ministry of Finance announced that the fund’s steering committee is now authorized to intervene in the market to stabilize Taiwanese shares during this challenging period.
Following a 9.7 percent drop on Monday, the TAIEX closed down by 4.02 percent, reaching its lowest level in 14 months. Major companies like Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry Co also witnessed declines in their stock prices. The Ministry of Finance highlighted that foreign investors have been selling off their holdings since the beginning of the year, contributing to the market instability. Despite some investors showing interest in buying during the downturn, yesterday’s loss marked one of the largest daily declines in the history of the Taiwan Stock Exchange.
Market analysts observed a global atmosphere of panic, with various stock markets experiencing significant fluctuations. While the TAIEX faced challenges, other markets like Tokyo, Hong Kong, and Shanghai saw fluctuations in response to geopolitical and economic developments. The rebound in some markets was attributed to positive signals from the US markets, prompting investors to cautiously re-enter trading activities.
The activation of the National Stabilization Fund underscores the government’s commitment to maintaining stability in the stock market. By utilizing the fund’s assets for market stabilization tasks, authorities aim to restore confidence among investors and prevent further volatility. The current situation reflects the interconnectedness of global financial markets, emphasizing the need for coordinated efforts to address market uncertainties.
As the Taiwan Stock Exchange navigates through these challenging times, experts emphasize the importance of monitoring external factors that could impact market dynamics. The government’s swift response in utilizing the National Stabilization Fund demonstrates a proactive approach to mitigate risks and safeguard the interests of local investors. By closely monitoring market trends and implementing targeted interventions, authorities aim to foster a resilient and stable stock market environment amidst evolving economic conditions.
Overall, the recent market fluctuations highlight the importance of robust financial mechanisms and strategic interventions to address uncertainties in the stock market. The government’s decision to activate the National Stabilization Fund reflects a commitment to bolstering investor confidence and ensuring the long-term stability of the Taiwanese stock market.
