The Financial Supervisory Commission's Securities and Futures Bureau announced a significant policy relaxation yesterday (23rd). Effective from the 24th, the limit for mutual funds investing in a single company stock has been raised conditionally from the current 10% to 25%. This move is seen by the market as the "TSMC Clause" tailored specifically for the national treasure.
Core Policy: Unleashing 'National Treasure' allocation space
According to the directive issued by the Financial Supervisory Commission, the investment limit for single stocks in mutual funds will be raised from 10% to 25%, but there are two core prerequisites:
1. Weight Linking: The stock must account for more than 10% of the weighted index for the fund's investment limit to exceed 10%, but it cannot exceed the stock's actual share in the index.
2. Total Amount Limit: Investment in a single stock, along with its issued corporate bonds or financial bonds, is capped at 25% of the fund's net asset value.
Looking at the current state of the Taiwan stock market, TSMC's market cap has reached 55.36 trillion NTD, accounting for about 44.3% of the overall market weight, making it the only stock that meets this condition. Huang Zhonghao, Deputy Director of the Securities and Futures Bureau, stated that referencing limits in countries like the U.S. and South Korea, which are both 25%, this relaxation is aimed at enhancing the operational flexibility of mutual funds and boosting industry competitiveness.
"Yaochi Golden Mother" lifts restrictions
The policy's positive effects have made 00981A (Unified Taiwan Stock Growth), which has recently shown explosive performance and ongoing buzz, the focus once again. The fund manager, Chen Zhuanyao, has been dubbed "Yaochi Golden Mother" by investors for her precise trading, and the online reaction to this relaxation has been extremely enthusiastic.
Analysts indicated that in the past, active funds were limited by the 10% rule, and even if managers were extremely optimistic about TSMC, they couldn't keep up with the market configuration, leading to performance pressure. Now that the limit has been raised, a wave of "re-rating" and "stock replenishment" targeting TSMC is expected.
With 200 billion NTD in fresh capital, the Taiwan stock market is expected to hit 40,000 points.
The market estimates that by the end of March, the scale of Taiwan's active mutual funds (1.1 trillion NTD) and active ETFs (231 billion NTD) is astounding. If the single stock limit is raised to 25%, the estimated potential additional investment in TSMC could reach as high as 191.8 billion to 200 billion NTD.
Li Fangguo, Chairman of Unified Securities Investment Consulting, holds a positive view on this, believing it shows the government's bullish mindset, which is conducive to stimulating investment. Analysts further estimate that this influx of capital could potentially boost TSMC's stock price by about 3.64%. Since every 1 NTD increase in TSMC's price contributes approximately 8 to 9 points to the index, this "firepower release" is expected to be the key momentum for the Taiwan stock market to break through the 40,000-point barrier.
Investment Risk Reminder: Diversification and price support/suppression
However, there are still some calm voices in the market. Huang Yiting, Chairman of First Securities Investment Consulting, reminded that while the relaxation increases flexibility, it also brings risks of excessive concentration of holdings and insufficient diversification. Netizens also questioned, "If 25% of an active ETF is TSMC, what's the difference from just buying TSMC directly?" and reminded investors to assess the "double-edged sword" effect of price support and suppression.
The Financial Supervisory Commission emphasized that after the measure takes effect on the 24th, individual products must wait until the fund completes the amendment before officially launching.
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