Taipei: Taiwan's National Financial Stabilization Fund achieved a remarkable 81 percent return on its investments during its most recent market intervention, spanning from April 9, 2025, to January 12, 2026, as announced by the Ministry of Finance (MOF).
According to Focus Taiwan, the financial results were disclosed by the management committee of the stabilization fund, established to mitigate market volatility, following the conclusion of its regular quarterly meeting. The committee revealed that the fund invested NT$12.25 billion (approximately US$380 million) in shares over what became the longest market intervention in its history, lasting 279 days. By May 6, the fund had finalized the disposal of these shares, securing a net profit of NT$9.932 billion, which corresponds to an 81 percent return rate.
The committee further clarified that the stabilization fund's profit from stock disposal amounted to NT$9.86 billion, supplemented by NT$198 million received as cash dividends from its purchased stocks. After accounting for interest payments on margin trading and other expenses, the net profit stood at NT$9.932 billion.
The market intervention commenced in April 2025 in response to significant losses in the local stock market following the announcement of "reciprocal tariffs" by U.S. President Donald Trump. During this intervention period, the Taiex, the Taiwan Stock Exchange's benchmark index, surged by 13,175.53 points, marking a 75.76 percent increase.
Post-intervention, as the fund began divesting from January 13 and completed the process by May 6, the Taiex index experienced a further rise of 10,571.56 points, equivalent to a 34.58 percent increase. This growth indicated that the fund's withdrawal did not negatively impact the market, as share prices continued their upward trend, the committee noted.
An official from the committee informed CNA that the intervention proceeded smoothly, bolstered by Taiwan's robust economic fundamentals amid a flourishing AI industry, which helped counterbalance challenges posed by U.S. tariff policies. Initially, the local stock market faced a panic-driven downturn; however, the stabilization fund's involvement helped stabilize sentiment.
Despite the recent success, the committee warned that local stocks remain susceptible to uncertainties stemming from geopolitical tensions and international trade policies. Consequently, the stabilization fund will continue to monitor market conditions and implement stabilizing measures if deemed necessary.
Originally established in 2000 with NT$500 billion, the stabilization fund serves as a safeguard against unforeseen external disruptions to the local bourse. Its previous interventions occurred in 2000 (twice), 2004, 2008, 2011, 2015, 2020, and 2022. The fund's largest intervention by volume took place in October 2000, with a NT$120 billion investment during a period of heightened fears related to the dotcom bubble, rising oil prices, and halted construction on Taiwan's No. 4 nuclear plant.