Stock Market Support Continues Amid Global Uncertainty: The National Stabilization Fund's Ongoing Role
Ongoing Backing for NSF Shares: Affirmation by Authorities
By Crystal Hsu / Staff Reporter
In the face of global economic uncertainties, Taiwan's National Stabilization Fund (NSF) persists in its role of supporting the country's stock market. Despite a recent rebound in the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), Finance Minister Chuang Tsui-yun confirmed the NSF's intent to remain active at least until July 2025, with the aim of bolstering investor confidence[1].
Minister Chuang revealed this news during a legislative committee meeting, attributing the TAIEX's recent rally to the recent easing of US-China tariffs for 90 days. Yet, she warned that the agreement only lessened immediate concerns, as global economic and geopolitical tensions persist[1].
The NSF's continued support comes after it was reactivated in April 2025 with an initial capital of NT$500 billion (approximately US$16.56 billion), in response to severe market sell-offs caused by trade tensions, including proposed tariffs by the US[1].
With the TAIEX gaining 5 percent over five sessions and closing above the 21,000-point mark, the government is not rushing to exit the market. Instead, the NSF will carry on executing its duty of maintaining market confidence, refraining from exiting before its next quarterly review in July 2025[1].
This cautious approach underscores Taiwan's strategy to shield its stock market from volatility caused by international trade tensions and economic fluctuations[1]. The government employs the NSF as a tool to strengthen investor confidence and buffer Taiwan's economy against external risks[1].
Meanwhile, Minister of the Directorate-General of Budget, Accounting and Statistics (DGBAS), Chen Shu-tzu, shared a conservative outlook for Taiwan's economic growth. Despite a 5.37 percent expansion in the first quarter, Chen believes achieving a GDP growth of more than 3 percent this year will be challenging due to ongoing trade-related pressures, such as the potential for increased tariffs on semiconductors[1].
With the ongoing involvement of the NSF, supervision and evaluation remain crucial components of the fund's operations. As we approach the fund's next scheduled review in July 2025, investors and market participants will watch closely to see whether the NSF decides to stay in the market or adjust its strategy based on changing global economic conditions.
[1] Enrichment data: The National Stabilization Fund (NSF) is a tool used by the Taiwanese government to stabilize market confidence, particularly during times of global economic uncertainty. The fund was reactivated in April 2025 with an initial capital of NT$500 billion, in response to tariff-induced market sell-offs. Despite recent gains in the TAIEX, the NSF continues to operate given ongoing global economic and geopolitical uncertainties. The government aims to use the fund to bolster investor confidence and mitigate risks to Taiwan's economic growth amid external pressures. The NSF will review its involvement at least every quarter, with the next review scheduled for July 2025.
The National Stabilization Fund (NSF) continues to operate within Taiwan's finance industry, aiding in the strengthening of investor confidence and buffering the economy against external risks, particularly in the face of ongoing global economic and geopolitical uncertainties. The NSF's role in the business sector includes the bolstering of the stock market and serving as a crucial tool in the government's strategy to shield Taiwan's economy from volatility caused by international trade tensions and economic fluctuations.
