Taiwan Stocks Surge 22% in April, Banks' Unrealized Gains Hit Record High

According to Central News Agency, financial markets rebounded in April as the impact of the U.S.-Iran conflict waned. Banks increased their bond holdings by NT$111.1 billion and added NT$45.7 billion to their Taiwan stock positions in April. With the Taiwan stock index surging 22.71% during the month, banks' unrealized gains on local equities reached NT$741.2 billion, a new historical high.

The latest data released by the Financial Supervisory Commission (FSC) shows that as of the end of April 2026, the combined domestic and foreign stock investment balance of Taiwan's three major financial sectors—banking, insurance, and securities—stood at NT$5.419 trillion, while bond holdings totaled NT$31.9111 trillion.

The U.S.-Iran conflict erupted in late February, intensifying market volatility in March. However, as its impact gradually diminished, global stock markets began a recovery in April. Despite high U.S. bond yields and falling bond prices, banks continued to increase their bond purchases by NT$111.1 billion in April, while also adding NT$45.7 billion to equity investments. The 22.71% rise in Taiwan's stock market pushed banks' unrealized gains on local stocks to NT$741.2 billion, setting a new record.

In the insurance sector, total bond holdings reached NT$21.1832 trillion by the end of April, with life insurers holding NT$21.0672 trillion and property & casualty insurers holding NT$116 billion. In equities, life insurers held NT$359.14 billion and property & casualty insurers held NT$7.9 billion.

Looking deeper into life insurers' fund allocation, overseas investments—including international board bonds and foreign currency-denominated policies—reached NT$22.1947 trillion by the end of April, accounting for 58.1% of total funds, down from previous levels. Their holdings in Taiwan stocks amounted to NT$283.14 billion, representing 7.4% of total funds.

Life insurers' combined domestic and foreign cash holdings totaled NT$1.0409 trillion, down NT$51.7 billion from the previous month.

Regarding securities firms' proprietary trading activities, data shows that in April, they reduced domestic bond holdings by NT$9.587 billion but increased foreign bond investments by NT$22.9 billion and significantly boosted their Taiwan stock positions by NT$40.64 billion.