The Taiwan stock market has been falling for days. Today, it fell 1,374.19 points to close at 41,574.72 points. According to statistics, since the intraday record high of 49,968.92 points on October 6, the index has retraced more than 8,000 points in just one month. Among them, foreign investors went crazy and sold more Taiwanese stocks. In October alone, they sold 942.18 billion yuan. From January to October this year, foreign investors sold more than 2.2947 billion yuan, setting a new high for the same period in five years.
Huang Zhonghao, deputy director of the Securities and Futures Bureau of the Financial Supervisory Commission, pointed out that Taiwan stocks have recently been affected by the uncertainty of international stock markets and international geopolitical situations, resulting in large index fluctuations. However, the fundamentals of Taiwan stocks are good, and current market risk indicators are also within control. He emphasized that the Financial Supervisory Commission continues to pay attention to recent changes in the stock market and has asked stock exchanges and over-the-counter buying centers to pay close attention to the dynamics of international financial markets.
Huang Zhonghao said that today’s closing index of Taiwan stocks on November 5 was 41,574.72 points, down 1,374.19 points, or 3.20%. The trading volume was approximately 926.024 billion, which was still between the major Asian stock markets in the same period (as of 13:30 p.m.). Looking at Asian stock markets during the same period, South Korea fell 5.52%, Japan fell 2.05%, Shanghai Composite fell 0.42%, Hong Kong rose 3.22%, and Singapore rose 0.22%.
Secondly, according to statistics, as of the end of September this year, the price-to-earnings ratio is approximately 26.68 times, and the cash yield rate is 1.54% (plus stock dividends is 1.58%); the cumulative revenue of listed OTC companies as of the end of September this year is approximately 49.89 trillion yuan, an increase of 38.21% over the same period last year. In addition, as of November 4, the overall guarantee maintenance rate of credit transactions was 167.42%, and the overall market borrowing and selling ratio accounted for 4.42% of the market transaction value.
The Securities and Futures Bureau stated that there is still some distance from the recovery threshold and the risk is still within control.
In addition, a review of foreign investment overselling trends showed that foreign investors "net oversold" Taiwan stocks by 942.18 billion yuan in October, setting a record for the largest overselling in a single month in five years and setting a new high for the same period. From January to October this year, foreign investors' "net overselling" reached 2.2947 billion yuan, setting a new high for the same period in five years.
In terms of capital remittances, foreign capital's "net outflows" in October were US$6.461 billion, equivalent to approximately NT$209.8 billion, which was the second largest "net outflow" in a single month in five years and the highest record for the same period. However, in the first ten months of this year, the cumulative "net inward remittance" of foreign capital reached US$101.9 billion, a new high for the same period in five years; in other words, the "net inward remittance" of foreign capital remained throughout the year.
In this regard, the Securities and Futures Bureau pointed out that the adjustment of foreign investors in Taiwan stocks in October is more related to the international stock market, because foreign investors who oversell may not necessarily be repatriated immediately, and some transactions may also be based on long-short operation strategies. The entry and exit of foreign investors in Taiwan stocks cannot be directly equated with remittances or remittances.
