TAIPEI (TVBS News) — Taiwan's financial markets require careful assessment amid complex international economic dynamics, according to Juan Ching-hwa (阮清華), executive secretary of the National Financial Stabilization Fund (國安基金), Taiwan's market intervention mechanism. Speaking at a press briefing Tuesday (July 15), Juan urged analytical caution as Taiwan navigates trade discussions with the United States and anticipates potential shifts in American monetary policy. The government-backed fund confirmed its decision to continue market operations despite relative stability in Taiwan's equity markets, which have consistently maintained values above 22,000 points since the middle of June.
The senior financial official conveyed that the Ministry of Finance (MOF, 財政部), Taiwan's treasury department, stands firmly behind the cash distribution initiative proposed by the Executive Yuan (行政院), Taiwan's cabinet. Juan expressed confidence in the island's trade representatives, asserting their capability to achieve optimal results in ongoing tariff negotiations with American counterparts. Despite current market equilibrium, he identified several external variables requiring vigilant observation during the remainder of 2025, particularly United States economic trajectories and inflationary pressures that could impact Taiwan's financial landscape.
Taiwan's robust economic performance received official recognition from the Directorate General of Budget, Accounting and Statistics (主計總處), the government's central statistical agency, which forecasted 5.35 percent gross domestic product expansion during 2025's initial six months. Juan explained this growth stems from domestic corporations successfully leveraging artificial intelligence and advanced computing market opportunities. Additional stimulus came from accelerated American purchasing patterns as importers sought to acquire Taiwanese goods before potential tariff implementation. The financial official cautioned that this exceptional performance might not continue, suggesting economic momentum could decelerate in coming months and recommending thorough analysis of underlying conditions.
The stabilization fund's fundamental purpose remains market equilibrium rather than financial returns, Juan emphasized, noting that any decision to cease market operations would require unanimous agreement from the fund's oversight committee. He counseled market participants to evaluate global economic conditions and sector-specific developments objectively during periods of volatility to make investment decisions consistent with the fund's approach. Parallel support measures have emerged from the Ministry of Economic Affairs (MOEA, 經濟部), Taiwan's commerce and industry department, which has established a specialized working group to help smaller businesses manage risks associated with the strengthening Taiwan dollar. Financial authorities stand prepared to provide supplementary assistance if circumstances warrant intervention. ◼
