Taiwan Lifts Single-Stock Ownership Cap

Taiwanese regulators have increased the single-stock ownership limit for institutional investors from 10% to 25%. This policy change aims to address previous restrictions that prevented large-scale investment in major companies. The relaxation follows a period where high concentration in stocks like TSMC led investors toward passive ETFs. The move has contributed to recent market gains in major holdings. Investors previously used passive ETFs to bypass these ownership limits. The new rule allows for more direct acquisition of individual stocks. The previous regulation was intended to prevent excessive concentration of power and protect minority shareholders. Under the new rules, investors can hold larger stakes in individual companies.