During the KMT regime, Party funds may also be involved in stock market support operations. However, the recent weakness in the stock market has highlighted the losses of the investment by these public funds, and led to worries as to how much more money could the government mobilize for this purpose. Recent discussions of injecting more postal savings into the stock market have highlighted worries that a point may be reached when there could be a run on the postal savings system. Increasingly, there are views expressed that the government should refrain from intervening in the stock market in the old manner. The property market has been weak for over a decade, particularly for areas in the middle and southern part of the Island, because of massive oversupply.
Persistent oversupply is also a reflection of vested interests and political influences.
For example, developers who could turn agricultural land into housing land through political connections or other means could make a lot of money, even if only a proportion of the new supply could be sold. The construction companies have also a vested interest that building activities go on. For a long time, asset-based lending is a common practice amongst the banks, and property is often the most important class of asset. The introduction of new banks during the 1990s in an effort to inject more competition in the banking system has also had a side effect of providing credit to companies which would otherwise not have such credit. Prolonged weakness in property and share prices, coupled with poor risk management and cases of improper lending, have resulted in rising levels of non-performing loan in the banking system.