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This significant retail and institutional engagement fosters stability, as local investors tend to have a vested interest in the country's economic health. Their confidence in Taiwan's economic prospects translates into less volatile market movements, especially during times of global turbulence.
The Power of the National Stabilization Fund
Complementing the strong domestic investment base is Taiwan's National Stabilization Fund—a formidable financial safety net designed to support the markets during downturns. This strategic reserve acts as a "backstop," enabling authorities to intervene when necessary to prevent excessive declines and maintain investor confidence.