Deputy finance minister denies stock sales on soaring Taiex

Taipei, Jan. 5 (CNA) Deputy Finance Minister Juan Ching-hwa (阮清華), who also serves as executive secretary of the National Financial Stabilization Fund, on Monday denied speculation reported in the local press that the fund took advantage of soaring stock prices to sell shares for profit.

Asked about the rumors during a Legislative Yuan hearing, Juan said the stabilization fund would not sell any of the holdings accumulated during its intervention until the committee decides to withdraw from the market.

"When the fund will retreat from the market will be decided by its committee," Juan said. "Even if the committee decides to stop the intervention, it will adjust its positions based on market conditions and is unlikely to cut its holdings in one or two sessions."

The committee is scheduled to meet on Jan. 12 to discuss whether the fund will continue its market support program.

The NT$500 billion (US$15.93 billion) stabilization fund was established in 2000 to buffer the local equity market against unexpected external factors that might disrupt the local bourse. The fund launched its latest intervention on April 9, marking the ninth such move since its creation.

Market volatility intensified after the Trump administration announced sweeping "reciprocal tariffs," including a 32 percent levy on Taiwanese goods, on April 2.

Following the Tomb Sweeping Festival holiday, the Taiex plunged 9.7 percent on April 7 to 19,232.35, its steepest-ever single-day fall. The index dropped a further 4.02 percent on April 8 and 5.79 percent on April 9 to hit a recent low of 17,391.76.

Taiwan has since negotiated the tariff down to 20 percent and continues talks for further reductions. Meanwhile, optimism over artificial intelligence development helped fuel a strong market rebound. From April 9 to the end of 2025, the Taiex surged 66.54 percent to close at 28,963.60. In 2025, the index soared 25.73 percent.

On Monday, the Taiex rose a further 2.57 percent to close at 30,105.04, surpassing the 30,000-point mark for the first time, led largely by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), a major AI-related stock.

"It was hard in the past to imagine the Taiex breaching 30,000 points. But now it has happened as Taiwan's industries move in the right direction," Juan said, referring to efforts in AI development.

He also attributed the Taiex's 755 point rise to TSMC's strong gains, which contributed about 670 percent of the index's upturn.

With lawmakers expressing concern over uneven growth between high-tech and traditional sectors, Juan said the government will assist old-economy industries to upgrade and narrow the gap with their tech counterparts.