Fri, Apr 13, 2012 - Page 1 News List

National Stabilization Fund mum on rumored exit

NO COMMENT:Although the fund is authorized to intervene in the market until the middle of this month, officials did not say if that authority would be extended

By Amy Su  /  Staff Reporter

The government did not announce yesterday whether it would continue to use the state-run National Stabilization Fund (國安基金) to support the local stock market, though a source confirmed to the Taipei Times that the government fund was set to discontinue its intervention.

Vice Minister of Finance William Tseng (曾銘宗), who is the executive secretary of the fund’s management committee, said the committee held a meeting yesterday, but he refused to confirm or deny whether the fund would continue to intervene in the stock market.

The committee authorized the fund’s intervention in Taiwan’s stock market on Dec. 20 last year, instructing it to buy stocks during sharp declines amid global economic uncertainty, the first time the fund had intervened in the stock market since September 2008.

In January, the committee authorized the fund to continue its intervention until the middle of this month to bolster investor confidence ahead of the nation’s presidential and legislative elections at the time.

On March 22, Minister of Finance Christina Liu (劉憶如) told the legislature that the government would continue to use the fund to “stabilize” the stock market.

However, Liu yesterday declined to comment, saying only that the fund was expected to “come and go without leaving a trace behind,” a hint that the fund may leave the stock market gradually and invisibly.

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