Finance Minister Chang Shang-ford says the national stability fund is being used to deal with possible stock market fluctuations. That’s following last Friday’s attacks in Paris.
Chang spoke at the legislature on Monday about the purpose of the national stability fund.
“The purpose of the national stability fund is to restore investors’ confidence in the stock market and maintain market order," said Chang.
"The amount of the fund is not the point. When we implemented the fund last time when the market was at 7,400 points, it increased by 1,500 points right away, and that was enough. It’s not about the amount, but rather to show people that the government has been paying attention to the market.”
Chang said France is a major financial center in Europe, so the attacks in Paris will have an effect on the global financial market. He said the national stability fund is ready to help stabilize the market when needed.
With the increased possibility of a US interest rate hike in December, foreign investors in the TAIEX have been overselling for six days in a row. Taiwan shares plummeted to lower than the quarter line of 8,340 points last week, before the situation in France became an added factor.