Taiwan’s market stabilization fund on hold: Cabinet

The Taiwan government has decided not to activate its National Stabilization Fund at the moment since the drop on the domestic stock market was smaller than in neighboring countries after the United States presidential election, the Cabinet said Wednesday.

The initial impact of Republican Donald Trump’s win was not as great on the Taiwan market as in South Korea or Japan, said Cabinet spokesman Hsu Kuo-yung (徐國勇) after a special meeting of the financial stabilization fund’s management board.

The main index on the Taiwan Stock Exchange fell 2.98 percent Wednesday to close at 8943.2 points, while the Japan stock market plunged 5.98 percent, and South Korea’s had dropped 3.46 percent as of 1:30 p.m. after Trump was declared the winner of the U.S. presidential election.

In Hong Kong the index tumbled 3.67 percent, in Singapore 1.88 percent, and in Shanghai 0.81 percent.

Hsu said the fundamentals of most listed Taiwanese companies and over-the-counter firms were solid and the stock and futures markets were in good shape.

He noted that after the Brexit vote in the United Kingdom, the Financial Supervisory Commission launched a mechanism that would allow the stock exchange and relevant institutions to keep close tabs on global financial fluctuations.

If world markets continue to tumble in the coming days, however, the FSC will consult with the Central Bank, Ministry of Finance and other agencies to decide on emergency measures, Hsu said.

Meanwhile, at a national security conference, President Tsai Ing-wen (蔡英文) gave the Cabinet a directive to take the necessary steps to stabilize Taiwan’s financial and currency markets, according to her spokesman.

Tsai also told senior officials from the relevant agencies to reiterate Taiwan’s high interest in participating in the Trade and Investment Framework Agreement as a means of strengthening trade and economic cooperation with the U.S., spokesman Alex Huang (黃重諺) said.

At the conference, Tsai also asked members of her government to make contact with Trump’s foreign policy staff to ensure a continued close relationship between the two countries, Huang said.

No matter who is the White House, Taiwan is confident of maintaining its solid ties with the U.S., based on their longstanding friendship, common interests and shared values, both government spokesmen said.

Source: Focus Taiwan News Channel

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