Shares in Taiwan tumbled 340 points today (26), dipping below the 10.004 level, falling below the closing rate announced by the National Security Fund on July 12. Ruan Qinghua, executive secretary of the National Security Fund, believes the sharp decline in the stock market is mainly due to rising US interest rates and the strength of the US dollar. It is related to the flow of funds. Taiwan stocks are currently oversold but still supported by fundamentals. The National Security Foundation is paying close attention.
The sharp rise in rates in the United States is pushing upUS dollar indexStopping at 113 and continuing to record all-time highs, the Taiwanese financial market once again experienced a sharp decline in equities and foreign exchange rates.New Taiwan dollarIt fell to 31,901 yuan against the US dollar, approaching the 32 yuan mark, and Taiwan shares were slow too.After the opening dip exceeded 14,000, the lowest point fell to 13,743 points, which is dropped to the closing rate announced by the National Security Fund on 12 July. 13951 points.
Regarding the continued decline in Taiwanese stocks, Ruan Qinghua said that the rise in US interest rates pushed the dollar to strengthen and that non-US currencies depreciated at the same time, 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 (movement of money) may not be over yet.
Ruan Qinghua said that Taiwan’s listed OTC profits have reached a record high, the rate of return is the highest in the world, and the price-to-earnings ratio is more than 10. He is optimistic that Taiwan’s stocks still have a good fundamental support, but the future stock market has yet to see changes in the international economic situation.
In the past, the entry of the Guoan Fund into the market has almost effectively bolstered 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 wonder if the stability of the Guoan Fund has failed. Trust?
In this regard, Ruan Qinghua stressed that the National Security Fund must follow the trend, and it is impossible to confront the market, but stressed that it will do its best to maintain the stability of the market order and pay close attention to the political and economic situation at home and abroad Faced with market changes in a rational way, reiterate that the stock market will eventually return to its fundamentals.
–
