Overview
- Taiwan's Financial Supervisory Commission, which lifted the single‑stock limit for domestic equity funds to 25% on Friday, set off a rush into TSMC shares.
- TSMC closed at a record NT$2,185 in Taipei as its U.S. ADRs gained about 3.3% before the open.
- The higher cap covers only stocks above a 10% index weight, leaving TSMC as the sole name that qualifies at about 44% of the benchmark.
- JPMorgan estimated the change could draw more than $6 billion of local buying and said it upgraded Taiwan stocks with higher targets for the main index.
- Analysts warned that larger allowed positions can raise concentration risk because ETF and fund flows can force automatic trades in TSMC, even as added local demand could narrow its price gap with the ADRs.