Taipei: Deputy Finance Minister Juan Ching-hwa, who also serves as the executive secretary of the National Financial Stabilization Fund, has firmly denied recent speculation that the fund capitalized on soaring stock prices to sell shares for profit. This clarification comes amidst rumors circulating in the local press, which prompted questions during a Legislative Yuan hearing. Juan reiterated that the stabilization fund will not part with any of its holdings amassed during its market interventions unless the committee determines to withdraw from the market entirely.
According to Focus Taiwan, Juan emphasized that the decision regarding when the fund will exit the market rests solely with its committee, which is set to convene on January 12 to deliberate on the continuation of the market support program. Even if the committee opts to cease its intervention, Juan assured that any adjustments to its positions will be made in consideration of current market conditions, and a sudden reduction in holdings is unlikely.
The NT$500 billion (US$15.93 billion) stabilization fund, established in 2000, aims to safeguard the local equity market against unforeseen external disruptions. Its most recent intervention commenced on April 9, marking the ninth instance since the fund's inception. The market had faced heightened volatility following the Trump administration's announcement of extensive "reciprocal tariffs" on April 2, including a 32 percent levy on Taiwanese goods.
The fallout from these tariffs was severely felt when the Taiex plummeted 9.7 percent on April 7 to 19,232.35, marking its steepest single-day decline. The index continued its downward trajectory, shedding another 4.02 percent on April 8 and 5.79 percent on April 9, reaching a new low of 17,391.76. Taiwan has since successfully negotiated the tariff down to 20 percent and is engaged in ongoing discussions for further reductions. Meanwhile, optimism surrounding artificial intelligence development has spurred a significant market rebound.
From April 9 to the end of 2025, the Taiex experienced a remarkable 66.54 percent surge, closing at 28,963.60. In 2025 alone, the index saw a 25.73 percent rise. The positive trend continued with the Taiex gaining an additional 2.57 percent on Monday, closing at a historic 30,105.04, surpassing the 30,000-point milestone for the first time. This upturn was largely driven by Taiwan Semiconductor Manufacturing Co. (TSMC), a prominent player in the AI sector.
Reflecting on the Taiex's performance, Juan remarked on the unprecedented achievement of the index breaching 30,000 points, attributing this success to Taiwan's strategic shift towards AI development. He acknowledged that TSMC's robust performance significantly contributed to the index's 755-point rise, accounting for approximately 670 percent of the upturn.
Addressing concerns from lawmakers about the disparity in growth between high-tech and traditional sectors, Juan assured that the government is committed to supporting the modernization of old-economy industries to help bridge the gap with their tech-focused counterparts.