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  • 5 hours ago
Taiwan will raise the single-stock investment cap for local equity funds and active ETFs from 10% to 25%, allowing greater allocation to large firms like TSMC. The market reacted positively, with TSMC's shares rising on Friday. However, experts warn this underscores a key risk: TSMC now makes up over 40% of Taiwan’s benchmark index, meaning its movements drive overall market performance.

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00:00Taiwan is easing some investment limits, which could likely give the country's booming stock
00:04market an even bigger boost. Taiwan's financial regulator says it will raise the single stock
00:10investment cap for local equity funds and actively manage ETFs from 10% to 25%. That
00:16would allow funds to invest more heavily in major stocks like TSMC. The market has reacted positively
00:22with shares in the chip giant rising on Friday. But the Thai X's heavy reliance on TSMC could
00:27carry some risks.
00:50TSMC currently accounts for over 40% of Taiwan's stock market.
00:53So that has been a very small market.
00:53Paul Melvin
00:53Paul Melvin
00:53That's not good.
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