MARKET BUFFER:The Financial Supervisory Commission said that the local market will only stabilize if the yuan stabilizes and US and EU equity markets stage a rebound
Date: Jan 18, 2016
By: Staff writer, with CNA
The National Financial Stabilization Fund (國安基金) will continue to support Taiwan’s stock market today as it tries to fend off the impact of a plunge in US and European markets last week, Vice Minister of Finance Wu Tang-chieh (吳當傑) said on Saturday.
Wu, the executive secretary and manager of the fund, did not respond to concerns over the results of Saturday’s presidential and legislative elections, which have raised fears of the possible deterioration in the cross-strait relationship.
The NT$500 billion (US$14.79 billion) fund is a mechanism set up by the government to serve as a buffer against unexpected external factors that disrupt the bourse. The fund committee has authorized the fund to buy local shares until it holds a review meeting today to decide whether the intervention should continue.
In Saturday’s elections, Democratic Progressive Party Chairperson Tsai Ing-wen (蔡英文) easily defeated Chinese Nationalist Party (KMT) presidential candidate Eric Chu (朱立倫) and People First Party (PFP) presidential candidate James Soong (宋楚瑜). [FULL STORY]