The finance ministry says it’s continuing to use the National Stabilization Fund to stabilize Taiwan’s stock market. That was the word from Deputy Finance Minister Wu Tang-chieh on Monday.
Wu says the Cabinet, which oversees the fund, has authorized its continued use to inject momentum into the stock market until April 15th.
The fund played a crucial role in stabilizing the stock market following the global slump in stocks last August. However, after NT$12 billion (nearly US$360 million) was pumped into the market since the beginning of the year, the fund’s unrealized losses have amounted to NT$400 million (US$13.3 million).
Wu says government intervention is mainly due to uncertainties in the global community.
“Things like the continued drop in international crude oil prices, the Fed’s raising of interest rates, as well as China’s economic woes and its [falling] stock and foreign exchange markets have all had a profound impact on global financial, stock and foreign exchange markets," said Wu, "Unstable geopolitics is also a risk. After discussing the matter with committee members, [we think] there is a need to continue boosting investor confidence.”