Despite the government's efforts to instill investor confidence, the Taiwan stock market plunged over 700 points within one minute of opening, with prices across the eight industries all falling. Over 200 companies hit limit-down level.
Domestically, we are still very cautiously optimistic. Therefore, citizens, compatriots and investors should have confidence in the domestic economy.
Despite Finance Minister Su Jian-rong's proclamations that Taiwan's market is as fundamentally stable and healthy as ever and reassurances that the National Stabilization Fund can be activated at any time, the stock index plunged 331 points upon opening and over 700 points within one minute on the 13th.
I earned a little and then I lost it all.
The stock market won't turn around that quickly. Wellington Koo can say whatever he wants about the National Stabilization Fund and whatever measures the government are taking, but the more they do, the worse it gets.
The National Stabilization Fund can only respond in one way. And then, for example, you could be seeing a flight ban down the line.
Share prices across the Eight Industries Index rose also fell, with just 25 companies seeing growth. Trading had to be suspended for over 200 companies. TSMC's weighted share price also fell over 7 percent at one point to NT$272.5, which was below its 12-month average, while Largan Precision share prices fell 8 percent and Hon Hai share prices fell over 5 percent during trading.
The share price fell to NT$272.5, which was below its 12-month average. If the downward spiral of the US market isn't stopped, foreign investors will continue withdrawing their capital from the Taiwanese market.
The National Stabilization Fund has been activated six times. The first time was in March 2000 during Taiwan's first political shift. It had to be activated again seven months later due to the bursting of the internet bubble and global crude oil crisis. The third time was in 2004 following the 319 "shooting" incident before the presidential election. The fourth time was during the financial crisis of 2008, while the fifth and sixth times were in, respectively, 2011 during the European debt crisis and 2015 during the Asian currency war.