By: Wei Shu, Tsai Yi-chu, Kuo Chung-han and S.C. Chang
Taipei, Aug. 24 (CNA) Financial regulators and central bank officials said Monday’s stock market plunge will not affect Taiwan’s solid finances that are backed by considerable foreign exchange reserves and current account surpluses.
Tseng Ming-chung (曾銘宗), chairman of the Financial Supervisory Commission, said the history-making mid-session plunge of the Taiwan stock exchange index was caused by worries about the Chinese and Hong Kong markets.
If share prices in the United States do not fall too heavily overnight, Tseng said the benchmark Taiex index will be “rather stable” the next day.
The Taiex plunged nearly 5 percent on heavy turnover after shedding nearly 7.5 percent in just under 90 minutes of trading, the biggest plunge in a session in the Taiwan exchange’s history. [FULL STORY]