Taiwan Relaxes Single-Stock Investment Caps to Boost TSMC Fund Exposure

Taiwan's financial regulator is moving to eliminate a long-standing barrier that has limited the ability of local active funds to capitalize on the growth of the nation's most valuable company. The Financial Supervisory Commission (FSC) announced plans to relax the current rule that prohibits actively managed funds from allocating more than 10% of their net asset value (NAV) to a single stock. This regulatory shift specifically addresses the constraints faced by money managers seeking to increase their exposure to Taiwan Semiconductor Manufacturing Co. (TSMC). For several years, the 10% ceiling has acted as an impediment, preventing local funds from fully tracking the massive valuation surge seen in TSMC shares. According to a statement released Thursday, the new guidelines are expected to take effect immediately following the issuance of an official order on Friday. A commission official confirmed the timeline during a briefing in Taipei. By allowing higher concentration in TSMC, the FSC is effectively enabling a surge of local institutional capital to flow into the semiconductor giant. This move is expected to provide additional support for the stock's price and increase the influence of domestic active management within the broader Taiwan equity market.