Finance Minister Chang Sheng-ford says the National Stabilization Fund (NSF) is in place to protect Taiwan from the impact of falling stocks worldwide.
Chang was speaking Thursday. He said that stock markets in Europe, the US, China, Japan, and Korea have all recorded drops. He said that drops in stock markets around the world have impacted Taiwan’s stock market.
"International stock markets have plummeted and ours has, too. The NSF is watching closely," Chang said. "That’s for sure, because international stock markets are not performing well today, and Taiwan stocks have dropped to a point lower than the threshold the NSF set when it intervened for the first time.”
China’s stock market has seen trading stopped twice in four days. Today, the “circuit breaker” was again triggered as the Shanghai composite dropped 5.38%. After trading resumed 15 minutes later, the market fell further, bringing daily losses to more than 7% and prompting a halt for the day before 10 a.m.
The severe drop in the Chinese stock market shocked the Asian market. Stocks in South Korea, Japan, and Taiwan have all been affected as a result.