Opening Plunge of 3737 Points Below 40000 Mark
Taiwan stocks collapsed after opening today (6th), opening with a plunge of over 3700 points, setting the largest single-day point drop. The index fell at its lowest by 3737.67 points to 37837.05 points, breaking below the 40000-point mark, also rewriting the record for the largest closing point drop in history of 2953.71 points set on July 17 this year, with a decline nearing 9%. Major heavyweight stocks including TSMC, MediaTek, Delta Electronics all hit limit-down.
Juan Ching-hua: Fundamentals Sound, Interim Meeting Not Ruled Out
National Stabilization Fund manager and Deputy Minister of Finance Juan Ching-hua stated today that Taiwan's economic fundamentals are very sound, but the National Stabilization Fund will not therefore ignore the stock market crash, and if the market shows disorderly, confidence-collapsing irrational factors, convening an interim committee meeting to discuss response measures is not ruled out. He said Taiwan stocks have fallen for several days under international influence, with not only Taiwan falling, but South Korea, Japan and the United States all showing marked declines, and the National Stabilization Fund has been closely monitoring the market. As to whether an interim meeting of the National Stabilization Fund will be convened as early as today, he said changes in market trends will be closely monitored, and mentioned that although Taiwan stocks collapsed at the open today, the decline has now narrowed.
Ninth Market Rescue Lasted 279 Days, Setting Record
The National Stabilization Fund's last, ninth market rescue was triggered because U.S. President Trump announced reciprocal tariff policy in April 2025, causing violent turmoil in global financial markets, leading Taiwan stocks on April 7, 2025 to plunge 2065.87 points in a single day, a 9.7% decline, setting the then-largest point drop and decline on record, and triggering extreme market panic. The National Stabilization Fund therefore announced entry from April 9, 2025, but considering Taiwan-U.S. reciprocal tariff negotiations were still ongoing, it remained in the market until the Taiwan-U.S. reciprocal tariff negotiations were about to be finalized, only exiting on January 12 this year, a period of 279 days, setting the longest market rescue period in history.
Whether NT$500 Billion War Chest Will Expand to NT$1 Trillion in Focus
The National Stabilization Fund has about NT$500 billion in available funds, with NT$200 billion borrowed from financial institutions secured by public and private enterprise stocks held by the national treasury, such as TSMC and Chunghwa Telecom shares, and NT$300 billion from postal savings, postal life insurance reserves, labor insurance, labor pensions, and civil servants retirement funds. As the Taiwan stock index has risen higher, some legislators have suggested expanding the war chest to double available funds to NT$1 trillion, but there is as yet no conclusion.