Taiwan's Stock Market Gets a Boost: New Measures Launched to Stabilize the TAIEX

The Taiwan Stock Exchange (TWSE) Responds to Market Volatility with Proactive Measures, Bolstering Investor Confidence.

In a move to support the market, the Taiwan Stock Exchange (TWSE) announced a new wave of measures prior to the opening of the market on January 9th. This marks the third set of actions taken to stabilize the Taiwan stock market (台股) amid recent fluctuations.

The TWSE has declared two key initiatives: "Encouraging listed companies to initiate treasury stock purchases and enhancing information disclosure." These are not merely symbolic gestures; the exchange proactively contacted all listed companies on January 8th, urging them to leverage available mechanisms and initiate treasury stock buyback programs.

Although the previous day’s declines had begun to moderate, along with a significant reduction in margin loans, and the announcement of intervention by the National Stabilization Fund (國安基金), the situation was gradually shifting towards a rebound. However, the escalating US-China trade tensions have dampened the initial optimism stemming from the potential for negotiations between the United States and certain countries. This has cast a shadow over the TAIEX. The four major U.S. stock indices on January 8th saw a dramatic shift, going from a 3-4% gain to a decline. Major indices closed down. For instance, the Dow Jones fell by 0.84% to close at 37,645 points, the S&P 500 fell 1.57% to close at 4,982 points, the Nasdaq Composite declined by 2.15% to close at 15,267 points, and the Philadelphia Semiconductor Index plummeted by 3.57% to close at 3,562 points.