TAIPEI: Taiwan is not currently planning to call a meeting of its National Stabilisation Fund to intervene in the stock market, the deputy finance minister said on Thursday as markets tumbled more than 5% on China virus fears.
China is Taiwan's largest single trading partner, with some 40% of its exports going there, meaning it is vulnerable to any slowdown in the Chinese economy due to the spread of the new coronavirus, which has killed 170 people in China.
"The National Stabilisation Fund can't just meet, there needs to be certain conditions, including continuous declines in the stock market, a large amount of capital outflows and so on," Deputy Finance Minister Frank Juan told Reuters.
"It will only meet if the conditions have been met."
The fund was set up to intervene in markets to prevent a crash during periods of market turmoil.
Taiwan's main stock index sank 5.25% as of 12.30 p.m. (0430 GMT), its first day of trade after being closed for more than a week for the Lunar New Year holiday.
Juan said market fundamentals were strong, noting the government's recently revising up of its outlook for economic growth this year.
"The stock market is a window into the economy, and investors should have confidence in Taiwan's stock market."
Analysts at ANZ this week named Taiwan and Vietnam as the two economies "most exposed in terms of the potential impact on growth via the trade channel" to the virus outbreak.
Taiwan has so far reported eight cases and no deaths from the coronavirus, and the government has moved to stop most visitors from China coming to the island seeking to prevent its spread. - Reuters
source https://www.thesundaily.my/business/taiwan-markets-tumble-on-virus-fears-no-plan-to-intervene-yet-XD1948347
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