Financial Supervisory Commission (FSC) Chairman William Tseng says he still does not believe that there is a need for the National Stabilization Fund to intervene in Taiwan’s stock market.
Tseng was speaking on Friday after Taiwanese stocks fell by nearly 200 points or 2% in early trading. Tseng said it’s impossible to judge the effectiveness of the government’s economic policies by looking at stock performance on a single day. He also said that Taiwan’s stock market was the only major Asian market to make gains on Thursday.
Tseng said that the National Stabilization Fund can only intervene in the stock market when there is little market activity. He said that with trading during today’s session reaching NT$110 billion, he does not believe an intervention is necessary.
Cabinet spokesman Sun Lih-chyun also commented on Friday’s downturn. He said that while government policies cannot go against market trends, the government hopes that short-term measures can help create a more stable investing environment.
Taiwan’s stock market later made a slight rebound, closing up at the end of trading on Friday.