10000-Point Pullback Triggers 10th Stabilization Mission
Taiwan stocks surged to a peak of 49968 in early October, then came under pressure in line with major markets in the United States, Japan and South Korea amid turbulent international political and economic conditions, policy uncertainty after the U.S. midterm elections, and rising doubts over the outlook for the artificial intelligence industry. Selling pressure erupted across the board on November 6, with the benchmark index falling to an intraday low of 37837, setting a record for the largest intraday drop in history, and closing at 39701, down 10267 points from the earlier high, a decline of about 20.55%, as market panic rose rapidly.
Authorized Funds Deployed as Market Rebounds Nearly Two Thousand Points on 9th
The National Stabilization Fund Management Committee convened an emergency 131st extraordinary meeting on the afternoon of the 6th, determining that Taiwan stocks had fallen excessively, foreign investors continued heavy net selling, and high uncertainty remained in the international political and economic situation, meeting Article 8 of the National Financial Stabilization Fund Establishment and Management Regulations, and resolved to authorize the Executive Secretary to deploy funds as market conditions warrant, formally launching the 10th market stabilization mission. Taiwan stocks rebounded strongly by 1960.06 points on the 9th to close at 41661.7, retaking the 40000 level. Democratic Progressive Party Legislator Wu Bingrui noted the sharp selloff was linked to political changes after the U.S. midterm elections and selling pressure on technology stocks triggered by proposals from some newly elected Democratic House members to pause or halt AI development, constituting non-economic political factors that meet entry conditions, a view Finance Minister Chuang Tsui-yun said she agreed with.
No Timetable for Exit, Committee Consensus Required
In response to Kuomintang Legislator Yen Kuan-heng's questions on whether the support operation has a set duration and exit conditions, Chuang Tsui-yun said on the 11th at the Legislative Yuan Finance Committee that announcing market entry itself has the effect of stabilizing investor confidence, and how much capital is actually deployed and when operations are executed must be judged according to market changes, making it impossible to pre-announce an end date at launch. Finance Ministry staff will continue to closely monitor stock market changes, and any future termination of the market stabilization mission must still be discussed by the Management Committee, with an exit resolution made after consensus is formed. Looking back at history, the 1st support operation in March 2000 during the first change of ruling party ended after only 5 days, the shortest record; the 9th, launched on April 9, 2025 after U.S. President Trump announced reciprocal tariffs and exited on January 12, 2026, lasted 279 days, the longest record.
As to whether funds have actually been deployed to buy stocks, in response to Democratic Progressive Party Legislator Lee Kun-cheng's question on whether the rebound on the 9th reflected a confidence effect or deployed funds, Chuang Tsui-yun said the Management Committee has authorized the Executive Secretary to deploy funds as market conditions warrant, but related operations have been delegated to the Executive Secretary and she does not need to know, nor is it appropriate for her to know, declining to directly confirm whether stocks have been purchased or the amount. Deputy Finance Minister Ruan Qinghua, who concurrently serves as Executive Secretary, did not attend the business report; Chuang Tsui-yun explained he continues to monitor domestic stock market movements and must also watch U.S. stocks in the evening. In addition, Democratic Progressive Party Legislator Wang Shih-chien cited a Reuters report to question whether public banks were asked to increase stock purchases; Chuang Tsui-yun stressed the National Stabilization Fund and public banks' financial investments operate under different mechanisms, the National Stabilization Fund requires a committee resolution, and the Finance Ministry has not required public banks to buy stocks, only noting they may assess on their own if there is room to operate, with no mandatory directive.