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Finance minister to suggest stabilization fund to remain into January

Finance minister to suggest stabilization fund to remain into January

Taipei, Sept. 30 (CNA) Minister of Finance Chang Sheng-ford (???) said Wednesday that he will suggest the National Financial Stabilization Fund Committee authorize the fund to remain in the market into January, when Taiwan will hold its presidential election. Speaking in a financial committee of the Legislative Yuan, Chang said that he will attend a regular meeting of the fund committee on Oct. 15 as a committee member and make a suggestion that the fund continue its presence in the local equity market in a bid to smooth any impact from external factors. Some lawmakers have raised concerns that uncertainty over the upcoming presidential election will overshadow investors' sentiment and create volatility in the local stock market, hoping the stabilization will stay in the market until then. The presidential election is scheduled to be held on Jan. 16, 2016. The fund committee authorized the fund to intervene in the stock market on Aug. 25 as local shares suffered heavy losses resulting from turmoil in the global equity markets amid concerns over the world's major economies, in particular China, the second largest in the world. The NT$500 billion (US$15.15 billion) stabilization fund is a mechanism set up by the government to serve as a buffer against unexpected external factors that disrupt the bourse. After the fund's intervention, the weighted index on the Taiwan Stock Exchange has added more than 6 percent to close at 8,181.24 points on Wednesday. The fund committee has scheduled a meeting on Oct. 15 to review the market performance during the period of the presence of the stabilization fund. The market has feared that the upcoming meeting will decide on the fund's immediate withdrawal from the market. Chang's plan to make a suggestion to the fund committee responded to growing worries over a possible withdrawal of the stabilization fund after the Oct. 15 meeting. Among the worried lawmakers, the ruling Kuomintang's lawmaker Lu Shiow-yen (???) had urged the fund to stay in place until the end of the presidential poll in January and Chang said that the idea is "very appropriate." Vice Finance Minister Wu Tang-chieh (???), who manages the stabilization fund, said that he will also suggest in the fund committee meeting that the fund continue in the market into January. Wu will also attend the Oct. 15 meeting as committee member. After the October meeting, the next regular meeting has been scheduled for mid-January. Chang said that the fund committee could accept his suggestion to discuss a withdrawal in the January meeting. (By Chiu Po-sheng and Frances Huang)


Updated : 2021-09-19 02:02 GMT+08:00