Minister of finance pledges support for stock market

The government will act to stabilize the stock market should it drop "irrationally" after the US begins its expected invasion of Iraq, Minister of Finance Lin Chuan (林全) said yesterday.

"The ministry will react in line with market developments," Lin said at the legislature while fielding questions from KMT Legislator Yang Chiung-ying (楊瓊瓔).

"Reducing the [7 percent] daily limit on stock movements and activating the National Stabilization Fund are all options that we may consider," Lin said.

The Cabinet created the NT$500 billion fund in 1998 to buy stocks should the stock market tumble sharply on non-economic factors such as military tensions with China or natural disasters.

Lin also said the government could suspend the stock market if prices plummet after a war in Iraq has started. He said the ministry has prepared several measures to ensure investor confidence. He didn't elaborate.