Taiwan's National Security Fund Activated to Stabilize the Stock Market

The Executive Secretary is authorized to intervene as needed to safeguard the TAIEX amidst global economic uncertainties.

The National Stabilization Fund held its 124th committee meeting today, thoroughly discussing the recent performance of the Taiwan Stock Exchange (TAIEX), domestic and international political and economic situations, and the dynamics of financial and capital markets. The committee decided to authorize the Executive Secretary to utilize funds as necessary to perform market stabilization tasks, with the goal of maintaining stability in the Taiwanese stock market.

The Fund noted that the US administration under President Trump had announced reciprocal tariffs on various countries, with Taiwan facing a 32% rate. This has the potential to significantly impact Taiwan's industrial development and shake up international trade order. These measures have led investors to anticipate renewed inflation and heightened risks of a global economic recession, causing global stock markets to decline sharply. The TAIEX saw a drastic drop on April 7, 114, plummeting 2,065.87 points, or 9.7%, representing the largest single-day drop and point decline in history. International panic intensified, and the market continued its downward trend on April 8, falling another 772.4 points, or 4.02%. Investor confidence was demonstrably low. Furthermore, foreign investors had engaged in significant net selling from January to March, 114, further destabilizing the Taiwanese market.