TAIPEI (Reuters) Taiwan’s stock stabilisation funds are attentive to market conditions and will implement “effective” strategies to combat the market the deputy Financial Minister Frank Juan told Reuters on Monday, following another sharp drop in the prices of shares.
Taiwan’s fundamentals are positive, but it is the National Stabilisation Fund will closely monitor the effects on the global economy’s potential slowdown, according Juan who also runs the fund.
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Other departments of the government will be monitoring the market and will implement appropriate actions, he said.
The fund, administered by the finance ministry can intervene in the market when the government believes there is a significant amount of volatility.
The main index of Taiwan’s shares has fallen by more than 24% thus to the end of the year. It closed down 2.4 percent on Monday. The market has suffered due to fears that the global slowdown may negatively impact Taiwan’s trade dependent economy. Taiwan is a major producer of semiconductors that are used in everything from consumer electronic devices to fighter aircraft.
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The government is still expecting that the economy will grow by more than 3% in the coming year, but that’s far less than the 6.45 percent recorded for 2021 that was the highest pace since the 10.25 percentage rate of the year 2010.
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