The National Stabilization Fund (NSF，國安基金) held its regular meeting on December 12, not only announcing its Q4 2025 financial report but also declaring the cessation of its market stabilization mission. As the Taiwan stock market climbs above 30,000 points, the National Stabilization Fund has decided to withdraw successfully, marking the end of what has been the "longest market intervention in history" since entering the market on April 9 last year.
The National Stabilization Fund explained that since executing its stabilization mission starting April 9 last year, it has effectively stabilized the market and boosted investment confidence. Stock market trading has been active and orderly, with no longer the conditions specified in Article 8 of the "National Financial Stabilization Fund Establishment and Management Act" regarding "major domestic and foreign events, significant international capital movements that notably affect public confidence, causing capital markets and other financial markets to become disorderly or threatening national stability."
Following a consensus decision by the committee, the National Stabilization Fund will cease executing its market stabilization mission effective immediately, returning to normal securities market mechanisms. The fund's staff unit will continue monitoring the impact of domestic and international political and economic developments, and may convene meetings at any time when necessary to discuss whether to authorize market stabilization missions.
According to the National Stabilization Fund's latest financial report, from its market entry on April 9 last year to present, it has deployed approximately NT$12.24 billion (USD$383 million) in funds, with unrealized gains of approximately NT$6.44 billion (USD$201 million), achieving returns exceeding 50% excluding dividends. Compared to last year's third quarter financial report, the National Stabilization Fund did not add any additional funds during the fourth quarter.
Will Taiwan Stocks Decline as National Stabilization Fund Exits
Regarding public concerns about whether Taiwan stocks will face a downturn following the National Stabilization Fund's exit, historical experience shows that after completing its market support mission, the fund typically stops purchasing additional stocks. To maintain market stability, even when announcing its withdrawal, holdings are not liquidated all at once, allowing the market time to gradually absorb selling pressure, thus stock markets typically do not fall immediately.
Since its establishment, the National Stabilization Fund has intervened in markets nine times, with the most recent intervention last April in response to the stock market crash caused by then-President Trump's reciprocal tariff threats. Despite Taiwan stocks having recovered and continuously reaching new highs, the National Stabilization Fund remained steadfast, staying in the market on standby for intervention. As of today, it has lasted 279 days, setting a record as the longest market intervention in history.
