National stabilisation fund ready to enter local market
Deputy Finance Minister Frank Ruan says the government is closely monitoring the stock exchange and the National Stabilization Fund could enter the market if there's a sudden large decline in share prices.
Reuters is citing Ruan as saying Taiwan's fundamentals are still very good, but the fund committee will take "effective countermeasures" if problems persist due to the impact of a possible slow down in the global economy.
The statement comes after the Taiex moved sharply lower on Monday, losing more than 300 points.
The National Stabilization Fund was set up in 2000 with a budget of NT$500 billion. It serves as a buffer against unexpected external factors that could disrupt the local bourse. The government last authorised its intervention in July.