No decision has been made yet on whether the National Stabilization Fund (NSF) would step in to support Taiwan’s stock market, after the TAIEX plummeted by almost 10 percent yesterday, Premier Cho Jung-tai (卓榮泰) said today.
The TAIEX suffered the highest single-day percentage loss on record as investors scrambled following US President Donald Trump’s announcement of 32-percent tariffs on Taiwanese imports.
The stock market reopened yesterday for the first time since last Wednesday's White House announcement, following a four-day holiday weekend.
Photo: CNA
Cho said he hopes Taiwan would withstand another difficult day today, as it retains strong economic fundamentals and a robust economic system.
The decision to have the NSF intervene would take time and take into consideration a variety of factors and expert opinions as it is not decided only by the government, he said.
The government would, however, act to protect national resources and exercise oversight, he added.
Trump’s “reciprocal” tariffs, slapped on countries worldwide, have triggered sharp declines in stock markets around the world.
Yesterday, TAIEX dropped by a record 2,065.87 points, or 9.7 percent.
The NSF then released a statement that it would “not rule out” convening a temporary response committee.
This committee would assess domestic and international political and economic developments and discuss responsive measures to maintain investor confidence and market stability, the statement said.
Although yesterday’s stock market drop was significant, the government was adequately prepared, Cho said.
The Executive Yuan, the Financial Supervisory Commission (FSC) and the Central Bank of the Republic of China (CBC) have conducted extensive analyses of various scenarios, he said.
Cho also thanked the FSC and the Taiwan Stock Exchange for announcing three temporary response measures on Sunday to help maintain stock market stability.
Public response has indicated that the measures were helpful and deterred short selling, he added.
The FSC and CBC also implemented additional regulatory planning for 936 individual stocks, he said.
Cho said that with the US stock market showing signs of recovery yesterday, he hopes that Taiwan’s economy would be able to endure another testing day.
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