TSMC’s “One-Man Martial Arts” Impact on Taiwan Equity Futures: What Investors Need to Know

TSMC (2330), the world’s largest semiconductor company, has conducted a “one-man martial art” for 46 consecutive days, Huang Houming, deputy director of the Securities and Futures Bureau, confirmed today (30th) that TSMC since February 15 this year. accounts for more than 30% of Taiwan equity “small and large Taiwan index futures”. Huang Houming reiterated that the “effect is limited.”

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TSMC’s “one-man martial arts” for 46 consecutive days has reached the “narrow basis threshold” and US foreign investors will not be able to buy Taiwan stock futures in 3 months. File photo: Central News Agency

Looking back at April 2021, the Taiwan Stock Index was classified as a narrow index because the market value of TSMC was too high. The ban was not lifted until October 2022. During this period, TSMC was sold by foreign investors for more than 800,000 shares. , and the Taiwan Stock Index fell by 16,571 points; this time Taiwan stocks are once again facing the threat of the narrow index, and the market is ready.

This question was asked again to the Securities and Futures Bureau today ), for three consecutive months If the accumulation exceeds 30% for 45 days, the Taiwan stock weighted index will be classified as a narrow securities index, and Commission The US Commodity Futures Trading (CFTC) revokes the license not allowed in the US, including retail investors and legal entities, to trade narrow index futures.

The Futures Exchange will formally notify the United States that it will be visiting foreign investors in the near future.

Huang Houming said that the Taiwan Futures Exchange will formally notify the US CFTC, but it will also depend on the US’s answer on the exact date of the revocation. If there is an answer in the near future, trading will not be possible after three months .

However, he also emphasized that US traders are only 0.7% of my country’s futures trading and that these US traders belong to global groups and can use affiliates in other regions of the group to trading in Taiwan The Financial Supervisory Commission reiterated its assessment that the impact was “limited.”

As to whether the cap on single component equity will be reset in the future? Huang Houming said that the Taiwan Stock Weighted Index is a complete collection of stocks and must be compiled by weight without setting an upper limit. Are there any future improvement measures? He said that the Futures Exchange will actively visit foreign investors, hoping to strive for more participation in my country’s futures market transactions, and will also organize activities to attract foreign investment.

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