Taiwan's National Security Fund Steps In to Stabilize the Stock Market

Responding to Global Economic Uncertainty, the Fund Authorizes Intervention Amidst Market Volatility

In response to recent market fluctuations and global economic concerns, Taiwan's National Security Fund convened its 124th committee meeting on April 8th to address the situation of the local stock market, also known as Taipei Stock Exchange. Discussions centered on the domestic and international political and economic landscape, as well as the dynamic conditions of the financial and capital markets. The committee decided to authorize the Executive Secretary to utilize funds as necessary to stabilize the market and maintain the stability of the trading environment of the Taiwan stock market.

The National Security Fund highlighted that the Trump administration's announcement of reciprocal tariffs on various countries, including a 32% rate applied to Taiwan, poses significant challenges to Taiwan's industrial development. This move has also instigated turbulence in international trade, triggering investor concerns about renewed inflation and an elevated risk of global economic recession. These fears have led to substantial declines in global stock markets.

Specifically, the Taiwan stock market experienced a sharp decline on April 7, 2025, plummeting by 2,065.87 points (9.7%), marking the largest single-day drop in history. The market continued to slide on April 8, dropping an additional 772.4 points (4.02%), reflecting a lack of investor confidence. Furthermore, foreign investors have been consistently selling off shares from January to March 2025, a trend that further destabilizes the local stock market.