In order to combat the Taiwan stock market's infamous volatility,
oYcials in Taipei have come up with the idea of a National
Stabilization Fund (NSF), whose job it is to intervene selectively
and dampen down sharp stock market falls.
The intervention of government funds in the Taiwan equity market
is not new, but what makes the NSF noteworthy is its size. The
amount of capital set aside for the fund currently stands at NT$500
billion ($16 billion).
The NSF made its Wrst foray into the market during the...
