Taiwan Stocks Plummeting in Wake of Chen's Remarks

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Last updated at: (Beijing Time) Wednesday, August 07, 2002

Taiwan Stocks Plummeting in Wake of Chen's Remarks

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Separatist remarks made by Chen Shui-bian, leader of the Taiwan Authority have once again hurt the strength of the Taiwan stock market, causing stock prices to slide further, said a market commentary in a newspaper in Hong Kong.

The commentary, published on the Hong Kong Economic Journal Wednesday, said that Chen's remarks that a referendum on Taiwan's future destiny be held at an appropriate time and that "Each side is a country" have alarmed the international community and shocked the stock market to take an instantaneous, profound hammering.

"The market is keeping a close watch on the situation. What is more important is, the market has equated Chen's latest remarks with former Taiwan leader Lee Teng-hui's 'state-to-state theory' a

few years ago. At that time, the Taiwan market took a beating by 1,500 points," the commentator said.

It is expected that such remarks will continue to molest stability in the Taiwan stock market, the commentary added.

On Monday morning, financial experts and journalists there already expected the market would see a slump. As expected, a fall

of 284 points to 4,600 points of the Taiwan Weighted Index was recorded at that day's close.

"The incident (Chen's making of remarks) has undoubtedly cast a pall of uncertainty over the market. With many of the local companies announcing their interim half-year results, there is an obvious exertion of selling pressure.

"As a matter a fact, a selling signal has already appeared on the market's monthly averages chart. Now with the 'Each-side-is-a-country' comment, one should not be too optimistic about the outlook of the market," it said.

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