Current 2000億元 Quota Strained in Operations
Minister of Finance Chuang Tsui-yun said on 11日 that the current total scale of the National Stabilization Fund is 5000億元, including a borrowing ceiling of 3000億元 from the four government funds and a maximum borrowing limit of 2000億元 from financial institutions. With high sensitivity to fluctuations in the international political and economic situation, the 2000億元 quota creates operational difficulties, so she supports the Legislative Yuan amending the National Stabilization Fund Act to increase its scale and allow more operational flexibility. On the same day, the Legislative Yuan Finance Committee reviewed the 116年度 central government general budget concerning the Customs Administration and National Property Administration expenditure budgets and financing调度, with Chuang Tsui-yun leading relevant agency heads to attend for questioning.
Lawmakers Worry Foreign Sell-Off Far Exceeds Available Funds
The National Stabilization Fund resolved on 11月6日 to carry out its market stabilization mission, but its actually available borrowed funds are about 2000億元, raising lawmakers' concerns. Democratic Progressive Party Legislator Kuo Kuo-wen pointed out that foreign investors oversold NT$5244億元 last week, while the National Stabilization Fund can actually mobilize only 2000億元. Since 2000年, the market capitalization of listed stocks in Taiwan has grown 17.5倍, while the Fund's quota as a share has fallen from 2.44% in 2000年 to 0.14% in 11月 this year, describing that with foreign investors overselling more than 1000多億元 in a single day, the Fund would run out of ammunition in two days.
MOF Supports Raising Total Scale to 1兆元
Chuang Tsui-yun responded that the Legislative Yuan Finance Committee last year already reviewed a draft amendment to the National Stabilization Fund Act hoping to raise the total scale to 1兆元, which is still under review. The Ministry of Finance respects the Legislature's review outcome and recommends raising the current 2000億元 borrowing limit from financial institutions, while keeping the borrowing ceiling from the four funds unchanged. When the National Stabilization Fund was established in 2000年, Taiwan's stock market capitalization was only 9.2兆元 and has now grown more than 17倍, with the foreign ownership share rising from 8.44% to 46.78%. Regarding lawmakers' proposal to raise the financial-institution borrowing ceiling to 7000億元, Chuang Tsui-yun took a positive stance, saying it would help increase operational flexibility.
Positioned to Spark Market and Stabilize Investor Confidence
Democratic Progressive Party Legislator Lee Kun-cheng asked whether the National Stabilization Fund is currently responsible for sparking the market or has already actually entered the market. Chuang Tsui-yun said the Fund's purpose is to spark the market and stabilize investor confidence, and the executive secretary has now been authorized to act as conditions warrant; as for whether it has already entered the market, she does not need to know, nor is it appropriate for her to know. On whether to call on foreign investors to stop selling, she responded that foreign capital flows internationally based on its own considerations, and Taiwan's fundamentals are quite good so there should be confidence. Regarding media reports that on 11月6日 the Ministry of Finance instructed state-owned banks to buy appropriately, Chuang Tsui-yun clarified that state-owned banks already conduct their own financial operations and stock purchases, and it was not a requirement to buy, but a reminder that they could consider buying if they have room, still depending on their own financial operations.