Taiwan Stock Market Booms: Brokerage Margin Loan Balance Reaches NT$1.2 Trillion by End of May
Amid a booming Taiwan stock market, the FSC reports that brokerage margin loan balances reached NT$1.25 trillion by the end of May, a significant year-on-year increase. While the industry has proposed raising the regulatory limit, the FSC remains cautious.
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- 📰 Published: June 2, 2026 at 20:35
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According to the Central News Agency, the Taiwan stock market is experiencing high trading activity. Statistics from the Financial Supervisory Commission (FSC) show that the total margin loan balance of securities firms reached NT$1.2546 trillion by the end of May, an increase of NT$640.3 billion year-on-year. The ratio of margin loans to net worth stands at 178%. Regarding potential relaxation of the net worth ratio cap, the FSC stated that it is still exchanging views with the industry, noting that no brokerage has yet hit the regulatory ceiling. Under current regulations, the total amount of margin financing, securities lending, and unrestricted loans cannot exceed four times a firm's net worth. Huang Chung-hao, Deputy Director-General of the Securities and Futures Bureau, noted that the ratio has risen from 97% last year to 178% this year. While the Taiwan Securities Association has proposed raising the limit to six times net worth to facilitate more business, the FSC is maintaining a cautious approach based on risk management.
FAQ
Is the margin loan balance in Taiwan increasing?
Yes, it has increased significantly year-on-year.