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No timetable for fund intervention: vice premier

No timetable for fund intervention: vice premier

Taipei, Jan. 9 (CNA) Vice Premier Sean Chen said Monday in response to a query on whether the National Stabilization Fund will continue to intervene in the local bourse until after the Jan. 14 presidential election that no timetable has been set. Chen declined to speculate, but said "the probability is rather low" that members of the committee supervising the fund will announce an end to the current intervention when they meet for a new quarterly meeting prior to Jan. 15. Chen said the committee did not determine a timeframe for the fund's intervention when it last met. The committee announced Dec. 20 that the fund was ready to buy stocks to shore up local share prices and help maintain market order amid the impact created by the European debt crisis. The fund started its intervention in late December. The NT$500 billion (US$16.67 billion) National Stabilization Fund is designed to protect the local stock market from volatility caused by unusual external and internal negative leads such as the current debt crisis in the eurozone. Since August 2011, Chen said, global financial markets have been hit hard by the European debt fears and many bourses in the U.S., Europe and Asia have witnessed their trading volumes shrinking by as much as 40 percent, with many investors staying on the sidelines. In 2011, the local bourse even fell about 21 percent from a year earlier, with market sentiment having been seriously dampened. However, Chen said that since stabilization fund began being used, daily turnover on the local bourse has expanded to some extent, indicating that many investors have become more willing to trade. On Jan. 6, turnover expanded to NT$88.10 billion from NT$50.47 billion posted Jan. 2, which was the lowest figure on record since Jan. 20, 2009. In related news, Chen also said that it is possible that the Consumer Product Commission under the Executive Yuan could be merged with the Fair Trade Commission to better protect consumers and their rights. (By Yang Shu-min and Deborah Kuo)


Updated : 2021-03-09 04:05 GMT+08:00