The government has authorized the finance ministry to use the national stabilization fund to maintain market order. That’s the word from Vice Premier Chang Shan-cheng on Tuesday. On Monday, Taiwan share prices fell 4.83% amid a global plunge in share values.
At an impromptu meeting Tuesday, the government authorized Deputy Finance Minister Wu Tang-chieh to use the fund anytime, “depending on the circumstances.”
Compared with stock markets in Europe, Asia and the United States, Wu said Taiwan has seen its share prices nosedive the most at 20.38% this year. But he said he hopes the stabilization fund of NT$500 billion will boost investors’ confidence.
The TAIEX closed up 3.58% Tuesday on the back of the rally in major Asian stocks and the government pledge to stabilize market order.
The Cabinet is set to call a meeting on October 15th to decide whether it will continue authorizing the finance ministry to use the fund.