Taiwan's January Stock Rally Spurs Financial Firms to Buy Nearly NT$150 Billion

Escalating U.S.-Iran tensions weighed on risk assets worldwide and sent Taiwan stocks sharply lower in March, putting financial institutions’ asset allocations in focus. Banks, insurers and securities firms control vast pools of capital, and their trading activity both reflects their market outlook and affects liquidity in stock and bond markets. Their divergent moves underscored differences in risk tolerance and profit requirements across the three sectors.

As financial-market volatility intensified in March, the three sectors together added about NT$37.2 billion in positions, bucking the broader trend. Banks were the most aggressive, buying a net NT$39.8 billion of Taiwan stocks during the month while also increasing bond holdings. Insurers bought a net NT$19.6 billion, maintaining a modest pace of accumulation. Securities firms took profits instead, cutting Taiwan stock holdings by NT$22.1 billion, as banks bought the dip while brokerages moved first to lock in gains.