Chairman of the Financial Supervisory Commision (FSC) Tseng Ming-Chung says that there is no need to call on the National Stabilization Fund to intervene in the stock market.
Tseng was speaking Wednesday, shortly after the Taipei Stock Exchange closed at 8021 points. That is a 23-month low for Taipei’s stock market. Tseng said that poor economic fundamentals, a downward revision of Taiwan’s annual GDP growth forecast and a pessimistic outlook for the third quarter are among the reasons for the market’s poor performance.
Tseng said that investor confidence will be shaken if the market falls below the 8000-point mark. He said that because of this, the FSC is assessing the state of the global economy, financial factors, and fluctuations in stock prices and trading volume on Taipei’s stock exchange. According to Tseng, the FSC will use its findings to determine a course of action.
However, Tseng ruled out the possibility of calling on the National Stabilization Fund (NSF) to intervene in the stock market. Tseng said that the NSF can only be used if the market becomes unstable or there are fears of market volatility. He said that as long as trading volume remains between NT$110-150 billion, there will be no need for an NSF intervention.