Taiwan stocks plunged 340 points today (26), falling below the closing index announced by the National Security Fund on July 12. Ruan Qinghua, executive secretary of the National Security Fund, believes that the sharp decline in the stock market is mainly due to the increase in US interest rates and the strength of the US dollar. It is related to the flow of funds. Taiwan stocks are currently oversold, but they are still supported by fundamentals. The National Security Foundation is paying close attention.
Strong U.S. rate hike pushes upUS dollar indexStanding on 113 and continuing to record highs, Taiwan’s financial market once once more experienced a sharp drop in stocks and foreign exchange.New Taiwan DollarIt fell to 31.901 yuan once morest the U.S. dollar, approaching the 32 yuan mark, and Taiwan stocks were also sluggish. After the opening jumped over 10,000, the low point dropped to 13,743 points, which fell to the closing index announced by the National Security Fund on July 12. 13951 points.
Regarding the continuous decline of Taiwan stocks, Ruan Qinghua said that the US interest rate hike pushed up the dollar to strengthen, and the non-US currencies depreciated synchronously, which in turn led to the withdrawal of funds from emerging markets, which was the main reason for the sharp decline in the stock market. In this case, the impact of this part (money movement) may not be over yet.
Ruan Qinghua said that Taiwan stocks have made a record high profit from listing, the yield rate is the first in the world, and the price-earnings ratio is more than 10 times. He is optimistic that Taiwan stocks still have good fundamental support, but the future stock market still needs to look at the changes in the international economic situation.
In the past, the Guoan Fund’s entry into the market has almost effectively boosted market confidence, but this time it is a rare occurrence. The Guoan Fund is still in the market but the stock market has lost its pre-market low, which inevitably leads the market to question whether the stability of the Guoan Fund has failed. Confidence?
In this regard, Ruan Qinghua pointed out that the National Security Fund must follow the trend, and it is impossible to confront the market, but stressed that it will make every effort to maintain the stability of the market order, and pay close attention to the political and economic situation at home and abroad. Facing market changes rationally, reiterate that the stock market will eventually return to its fundamentals.
