The National Stabilization Fund (NSF) has decided to end its market-support operations, bringing to a close the longest intervention in history, as investor confidence and trading conditions have normalized.
The move took effect immediately, leaving the fund with a 52.56 percent return rate after deploying a cumulative NT$12.25 billion (US$387.29 million) since April 9 last year and securing an unrealized profit of NT$6.44 billion as of last month, the fund’s executive committee said in a statement yesterday.
The 279-day intervention was meant to shield markets from turbulence amid global market volatility and heavy cross-border capital flows, the committee said.
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During the period, the benchmark TAIEX surged more than 70 percent, closing yesterday at a record NT$30,567.29 — up 0.92 percent from the previous session — compared with 17,391.76 on the first day of intervention, when concerns over US President Donald Trump’s global tariffs rattled investors.
Government officials said the NSF’s actions successfully stabilized local equity markets and restored confidence, contributing to “active and orderly” trading.
For the entire last year, the TAIEX soared 25.73 percent.
Daily turnover on the local main board has exceeded NT$600 billion this year, with the state treasury poised to benefit from a securities transaction tax, the committee said.
“With market mechanisms functioning normally, there is no longer a need for the stabilization mission,” it said.
The committee said it would continue monitoring domestic and international economic and political developments, and could reconvene to intervene if risks re-emerge.
The NT$500 billion stabilization fund was established in 2000 to cushion the local equity market against unexpected external factors that might disrupt the local bourse.
The committee’s announcement yesterday underscored policymakers’ growing confidence that Taiwan’s markets could sustain momentum without support.
Market watchers said the NSF’s intervention, which helped maintain stability and reassure investors during a turbulent period, could now shift focus to broader market-driven growth, as major tech firms are set to post strong earnings this year, building on stellar performances last year amid strong global demand for artificial intelligence hardware, it added.
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