Taiwan’s stock market rose nearly 5% today, closing at 41,661 points, up 1,960 points—the second-largest gain in its history. At one point during the day, it surged by more than 2,600 points. On the same day, the Shenzhen Component Index was still up 1.2% in the morning, but fell 0.27% by the close, ending at its lowest point of the day.
On one side, the National Stabilization Fund stepped in for the tenth time to prop up the market and restrictions on short selling were tightened. On the other, with no one there to provide support, the market kept sliding. Put simply, market intervention can save an index for a day, but it can’t restore everyone’s confidence. $EWY