Three months after the government began using the National Stabilization Fund to prop up share prices, it said yesterday it would stop pumping more money from the fund into the market.
“In view of the signs of stabilization on the stock market, the expanding turnover and the continuous influx of foreign capital, the management committee ended the authorization for us to use the fund today,” said Tseng, who acts as the executor of the fund.
Tseng made the remarks following a meeting of the fund’s management committee, which decided to withdraw its temporary authorization to use the fund to prop up the stock market.
The government started using the fund to prop up Taiwanese share prices on Sept. 19 and extended the one-month authorization twice in October and last month.
The authorization will expire tomorrow.
Tseng said that the amount of foreign capital coming into the market this month was more than NT$10 billion (US$302 million), despite the global financial crisis.
He said that turnover on the Taipei exchange had been on the increase in comparison with the a few months ago.
“Turnover exceeded NT$90 billion on several days last week,” Tseng said.
Tseng said the management committee would convene again on Jan. 15 and would post details of the performance of the fund from the past three months on the ministry’s Web site.
“The management committee of the fund will continue to closely monitor the economic situation at home and abroad and will convene meetings when necessary,” Deputy Minister of Finance Tseng Ming-chung (曾銘宗) told a media briefing yesterday.