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DATE=7/19/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-251907
TITLE= TAIWAN/INTERVENTION (L-ONLY)
BYLINE=AMY BICKERS
DATELINE=HONG KONG
CONTENT=
VOICED AT: 
INTRO:  TENSIONS BETWEEN CHINA AND TAIWAN ARE UNNERVING INVESTORS
AND WEIGHING ON STOCK MARKETS IN THE REGION.  AS AMY BICKERS 
REPORTS FROM THE V-O-A ASIA NEWS CENTER, TAIWAN IS SPENDING 
BILLIONS TO SUPPORT ITS MARKET.
TEXT:  CROSS-STRAIT TENSION BETWEEN CHINA AND TAIWAN IS THE 
DOMINANT THEME ON TRADING FLOORS ACROSS GREATER CHINA.  DEALERS 
SAY SUCH CONCERNS ARE RATTLING STOCK MARKETS FOR THE SECOND WEEK 
AND EXPECT THE VOLATILITY TO CONTINUE.  
TAIPEI SHARES CLOSED (MONDAY) WITH A SMALL GAIN, BUT ONLY AFTER 
THE GOVERNMENT INTERVENED TO SUPPORT THE MARKET.  OFFICIALS SAID 
11-BILLION DOLLARS WERE AVAILABLE TO STABILIZE SHARES.  THE 
ANNOUNCEMENT HELPED THE BLUE-CHIP WEIGHTED INDEX BOUNCE BACK FROM
A LARGE LOSS EARLY IN THE SESSION.
DESPITE INTERVENTION ON PREVIOUS DAYS, THE MARKET HAS LOST ABOUT 
13-PERCENT IN THE LAST WEEK.  "JARDINE FLEMING TAIWAN SECURITIES"
ANALYST JOHN BREBECK SAYS MORE INVESTORS WILL LIQUIDATE IF THE 
TENSIONS CONTINUE.
                       /// BREBECK ACT ///
         I HAVE NEVER (BEFORE) SEEN THE INDEX LOSE ONE-THOUSAND 
         POINTS IN A WEEK. EVEN IN THE LAST MISSILE CRISIS IT 
         TENDED TO GO DOWN 200 TO 400-POINTS IN A WEEK.  IT WAS A
         MUCH MORE GRADUAL PROCESS.  THIS TIME WE HAD A DIFFERENT
         SITUATION BECAUSE EVERYBODY WAS VERY BULLISH, SO IT IS 
         QUITE NATURAL THAT SO MUCH WOULD COME OFF THE INDEX 
         BECAUSE THERE WAS A HUGE POLITICAL RISK BEING 
         INTRODUCED. 
                         /// END ACT ///
TAIWAN'S CURRENCY WAS ALSO UNDER HEAVY SELLING PRESSURE AND THE 
CENTRAL BANK AGAIN INTERVENED TO KEEP IT FROM DROPPING -- JUST AS
IT DID LAST WEEK.
IN HONG KONG AND CHINA, THE SAME CONCERNS WERE AT PLAY.  HONG 
KONG STOCKS LOST ALMOST THREE-FOURTHS OF A PERCENT AFTER SLIDING 
NEARLY FIVE-PERCENT LAST WEEK.  BROKERS SAID THEY STAYED  FOCUSED
ON A POSSIBLE MILITARY SHOWDOWN BETWEEN BEIJING AND TAIPEI AFTER 
CHINA SAID IT WAS PREPARED TO USE FORCE TO STOP TAIWAN FROM 
MOVING TOWARD INDEPENDENCE.
THE LOSSES WERE STEEPER IN SHANGHAI, WHERE DOMESTICALLY-HELD 
SHARES FELL MORE THAN TWO-AND-ONE-HALF PERCENT AND THE INDEX OPEN
TO FOREIGNERS SHED NINE-AND-ONE-HALF-PERCENT.  CHINA ANALYSTS SAY
THE MARKET COULD REBOUND QUICKLY IF THE TENSIONS SUBSIDE.   
(SIGNED)
NEB/AB/JO/RAE
19-Jul-99 7:28 AM EDT (1128 UTC)
NNNN
Source: Voice of America
.