1.Decision-Making Process:

 (1)The National Stabilization Fund (‘the Fund’) Management Committee authorized the fund to be activated on March 19, after several days of turmoil on international stock markets due to the COVID-19 pandemic.

 (2)As COVID-19 infections were spiking in many parts of the world and financial markets remain volatile, the Committee determined to continue to shore up the local bourse on April 13 and July 15, respectively.

 (3)Taiwan had done well in fighting COVID-19, and the local economy appeared resilient and had gradually recovered to outperform many other countries in the world, giving it confidence that intervention was no longer necessary. Therefore, the Committee decided to withdraw from the stock market on October 12.

2.Operation period from March 20 to October 12, disposal period from October 13 to November 9.

3.Financial benefits: (all dollar amounts are in NT$)

(1)Net cash revenues from disposal of shares: 990 million.

(2)Cost of shares acquisition: 757 million (excluding a financing cost of 3 million).

(3)Net revenues from share transactions: 233 million.

(4)The Fund has received 35 million in dividend as a result of this share purchase. Total net income: 268 million. Deducting financing costs of 3 million and transaction costs of 7 million leaves a total net income of 258 million.

4.Benefits of operation:

(1)The weighted index on the TAIEX soared 4,274.57 points, or 49.24 percent, from a low of 8,681.34 seen on March 19 to close at 12,955.91 on October 12. This fully shows that the Fund has exerted its influence and achieved its charge to stabilize the market.

(2)Considering market stability and liquidity, the Fund started selling shares on hand on October 13, and continued to sell shares from time to time until November 9.The stock market had risen steadily during the period of share disposal.

Due to the fact that the performance of the local stock market is still vulnerable to changes in the international political and economic situation, the Fund will continue to monitor for possible volatility in local stock prices, and the Fund could re-enter the market whenever necessary.

Contact Person: Director LO, HSING-JUNG

Contact Tel. (02)2322-8086