China’s benchmark Shanghai Composite Index lost 40% of its value from June, with shock waves felt around the world, Taiwan included.
The Taiwan Stock Exchange (Taiex) dropped by 7.49% in 90 minutes on August 24, the largest decline in a single session in the history of the exchange. The market closed down 376 points, or 4.84%, triggering an August 25 decision to use the National Financial Stabilization Fund to invest in the market. That intervention allowed the market to regain 10% of its value over the following week. At the beginning of September, the market seemed poised to once again to enter bear territory, however.