Financial authorities will continue using public funds to stabilize Taiwan’s stock market until at least next February. That’s according to Acting Finance Minister Juan Ching-hwa (阮清華), who made the announcement at the legislature on Thursday.
Taiwan’s stock market has fallen by over 20% since the beginning of 2022. The dramatic drop has been the result of market instability rooted in a number of issues, including the war in Ukraine, inflation, and rising interest rates in the United States. In July, authorities announced they would begin using public funds to stabilize the market.
On Monday Juan said today’s situation looks even worse than the 2008 financial crisis, and authorities have not ruled out continuing their stabilization measures for another year. The minister clarified on Thursday that though he hopes these measures are temporary, authorities will continue supporting the market at least through January’s Lunar New Year holiday.
Meanwhile, head of the chief financial regulator Huang Tien-mu (黃天牧) says regulators will maintain certain restrictions on stock sales into next year. He says regulators are neither pessimistic or optimistic about the stock market’s performance. He added that the restrictions are meant to deal with the economy’s immediate and unique situation and will not become permanent.