FSC head touts domestic impact on Taiwan stock market

TAIPEI (TVBS News) — Financial Supervisory Commission (FSC) Chairman Huang Tien-mu on Wednesday (Dec. 6) addressed questions from Kuomintang Legislator Lin Te-fu regarding the state of Taiwan's stock market, emphasizing the significant role of domestic funds and corporations in driving market momentum despite a heavy presence of foreign capital.

In a session at Taiwan's Legislative Yuan, Huang explained the resilience of Taiwan stocks, citing that while foreign capital comprises approximately 40% of the market value, it accounts for just 30% of regular stock volume. This indicates that internal funds and corporations retain a considerable impact on the market, Huang added.

During the legislative inquiry, Huang also highlighted a record inflow of foreign investment in November 2022, where overseas investors pumped in over NTD $350 billion into the Taiwanese market, marking a historical peak.

Analyzing the factors behind the surging foreign investment, Huang attributed the momentum to cooling inflation rates in the United States and the retreat from highs of U.S. national debt yields.

Confidence in Taiwan's robust economic fundamentals and attractive yield rates has led to increased foreign investment trust in Taiwan’s stocks, Huang continued.

Huang further argued that the sustained influx of 'hot money' into Taiwan indicates that not only foreign investors but also local funds and private investors are showing substantial interest in Taiwan's equities. He emphasized that their contribution to the market's vigor is a critical factor that should not be overlooked.

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