Guoan Fund has launched market protection for the 10th time! View entry conditions and previous results at once

Taiwan's stock market has recently been impacted by factors such as changes in the international political and economic situation, simultaneous tumbles in U.S. stocks and major Asian stock markets, and substantial overselling by foreign capital. Market confidence has been significantly affected. In order to stabilize the financial market, the National Financial Stabilization Fund (hereinafter referred to as the National Security Fund) held its 131st extraordinary committee meeting last Friday (6th), and the resolution authorized the Executive Secretary to use funds according to market conditions to launch the 10th market stabilization task.

Since its establishment, the National Security Fund has experienced major events such as the Internet bubble, the March 19 shooting incident, the global financial tsunami, the COVID-19 epidemic, and the U.S. reciprocal tariff policy. Whenever Taiwan stocks face major international financial risks or market confidence is obviously lacking, the National Security Fund may become an important policy tool for the government to stabilize the financial market.

The resumption of the task of stabilizing the market has also caused the market to re-focus on the establishment background and entry conditions of Guoan Fund, as well as the time, investment amount and final performance of previous market protections.

國安基金是什麼？ Founding background and main tasks

The full name of the National Security Fund is the "National Financial Stabilization Fund". It was established in accordance with the "Regulations on the Establishment and Management of the National Financial Stabilization Fund". The relevant regulations were promulgated and implemented on February 9, 2000, and was officially established and operational on March 15 of the same year.

Looking back at the background of its establishment, Taiwan was faced with the aftermath of the Asian financial turmoil, the Taiwan Strait missile crisis, and the political uncertainty brought about by the first political party rotation in 2000. Changes in the domestic and international political and economic environments exposed the financial market to greater risks of volatility.

In order to respond to financial market turmoil that may be caused by major domestic and foreign events, the government established the national security fund system as an important policy tool to stabilize the capital market and other financial markets when necessary.

The Guoan Fund's main purpose is not to pursue investment returns, but to reduce panic selling pressure through appropriate capital operations when there is a risk of major disorder in the market, stabilize investor confidence, and help the financial market restore normal trading order.

How much money can the National Security Fund use?

At present, the total amount of funds available for the National Security Fund is up to NT$500 billion, which is mainly divided into two major sources: borrowing from financial institutions up to NT$200 billion, and borrowing funds from relevant government funds that can be used for securities investment but not yet invested, up to NT$300 billion. Among them, relevant sources of funds include postal savings funds, postal life insurance accumulation funds, labor insurance funds, labor retirement funds and public servants retirement pension funds, etc.

However, 500 billion yuan is the total upper limit of the funds that can be used by the National Security Fund, which does not mean that all funds will be invested in the stock market every time to protect the market. The actual amount to be used must still be determined based on market conditions and the needs of market protection tasks.

When will Guoan Fund enter the market?

Guoan Fund will not enter the market whenever Taiwan stocks fall, but must consider factors such as major domestic and foreign political and economic events, international capital flows, financial market fluctuations, and market investment confidence.

According to Article 8 of the Regulations on the Establishment and Management of the National Financial Stabilization Fund, when major domestic or foreign events or significant movements of international funds significantly affect public confidence, causing disorder in the capital market and other financial markets or threatening national stability, the National Security Fund Management Committee may make resolutions in accordance with the law to carry out market stabilization tasks.

Therefore, whether Guoan Fund enters the market is not simply based on the decline of Taiwan stocks or specific index points as a criterion, but a comprehensive assessment of the stability of the overall financial market. Common evaluation factors include:

●The international financial market fluctuates violently: such as the global financial crisis, the sharp decline in the U.S. stock market or the rapid withdrawal of international funds.

●Major political and geopolitical events: such as wars, changes in the situation in the Taiwan Strait, major political events, etc.

●Irrational decline in Taiwan stocks: In the short term, the index fell sharply, panic selling pressure expanded, and the market trading order was affected.

●Massive withdrawal of foreign capital: Foreign capital continues to be significantly oversold, exacerbating market capital pressure.

●Market confidence is obviously insufficient: Investors’ panic is rising, which may cause abnormal fluctuations in the financial market.

Whether to enter the market will ultimately be decided by the Guoan Fund Management Committee based on market conditions and legal procedures. The decision is not simply based on the decline of Taiwan stocks or specific index points.

Compilation of the time and background of Guoan Fund’s previous entry into the market

Since its establishment in 2000, the latest resolution of the National Security Fund on November 6, 2026 is the 10th round of market stabilization tasks.

Most of the previous market entries are related to the international financial crisis, major political events and changes in the international political and economic environment. The entry times and main backgrounds of the 10 market stabilization tasks are summarized below:

Number of times Entry time Background and reasons at the time The first time 2000/03/16 Taiwan’s first political party rotation, the political situation and the situation in the Taiwan Strait caused market uneasiness The second time 2000/10/03 The Internet bubble, the suspension of the construction of the fourth nuclear reactor, the rise in international oil prices and domestic political and economic uncertainty The third time 2004/05/20 The 319 shooting incident caused political instability and stock market confidence was affected The fourth time 2008/09/18 The collapse of Lehman Brothers in the United States triggered a global financial tsunami. The fifth time. 2011/12/21 The European sovereign debt crisis expanded and global financial markets were shaken. The sixth time. 2015/08/25 Chinese stock markets plummeted, the devaluation of the renminbi and the global stock market corrected. The seventh time. 2020/03/20 The COVID-19 epidemic spread globally, and panic selling pressure occurred in financial markets. The eighth time. 2022/07/13 The Russia-Ukraine war, global inflation and US interest rate hikes have caused the market to worry about economic recession. The 9th time 2025/04/09 The United States announced a reciprocal tariff policy, triggering a sharp shock in global stock markets. The 10th time 2026/11/06 Resolution U.S. stocks and major Asian stock markets fell sharply after the U.S. midterm elections. Foreign capital was significantly oversold, and Taiwan stocks faced a sharp correction.

Guoan Fund’s previous entry performance

Judging from past historical records, the entry of Guoan Fund not only has the policy effect of stabilizing market confidence, but also generates actual investment profits and losses through buying and selling stocks. According to the previous record of protecting the market, in the past 9 missions of Guoan Fund to stabilize the market, except for the first time the market protection suffered a loss, the remaining 8 times ended in profits.

Among them, the ninth round of market protection launched in 2025 due to the global stock market shock caused by the US reciprocal tariff policy, the final net profit reached 9.932 billion yuan, with a return rate of approximately 81.08%, becoming a record of market protection that has attracted much attention in recent years.

The following is a compilation of the nine completed market protection mission periods, investment amounts and final profits and losses of Guoan Fund since its establishment:

Number of times Entry time Number of days to protect the market Amount of investment Final profit and loss The first time 2000/03/16 5 days 54.2 billion yuan, a loss of about 50 billion yuan The second time 2000/10/03 43 days 122.7 billion yuan, a profit of about 22.6 billion yuan The third time 2004/05/20 12 days 1.6 billion yuan, a profit of about 3.5 billion yuan The fourth time 2008/09/20 90 days 60 billion yuan, profit of about 31.9 billion yuan The fifth time 2011/12/21 120 days 42.4 billion yuan, profit of about 3.7 billion yuan The sixth time 2015/08/26 232 days 19.658 billion yuan, profit of about 1.2 billion yuan The seventh time 2020/03/20 207 days 757 million yuan, a profit of about 258 million yuan The 8th time 2022/07/13 275 days 54.508 billion yuan, a profit of about 8.3 billion yuan The 9th time April 2025 279 days 12.25 billion yuan, a profit of 9.932 billion yuan

Last Friday (6th), the National Security Fund once again decided to launch its 10th market protection mission, reflecting the government’s emphasis on the current international financial situation and short-term fluctuations in Taiwan stocks. However, whether Taiwan stocks can stabilize in the future still depends on the trend of the U.S. stock market, the flow of foreign capital, the international political and economic situation, and the fundamentals of domestic companies.

For investors, the entry of the National Security Fund can be seen as an important signal for the government to stabilize the financial market, but it should not be directly interpreted as the stock market has bottomed. In the face of severe market fluctuations, investors should still carefully evaluate investment risks, asset allocation and their own capital utilization needs to avoid making overly concentrated investment decisions due to short-term market sentiment.