Taiwan stocks fell more than 12% in a week, the world's worst AI long-term trend remains unchanged

[Reporter Wang Menglun/Reporting from Taipei] Taiwan stock market lost a lot of blood, the heaviest drop in the world! According to statistics, the Taiwan stock index plummeted 12.19% last week. The investment legal person said that the Taiwan stock market band fell by more than 20% and fell below the annual line on 11/6. After the financing is cut off, the decline of Taiwan stocks will meet the historical and long-term average decline. Therefore, based on historical experience, the financing balance after the financing is cut off will be conducive to the rebound of Taiwan stocks.

Statistics show that global stock markets ranked among the "top four" in terms of decline last week, with "Taiwan Weighted" falling by 12.19%, "Philadelphia Semiconductor" falling by 12.15%, "South Korea" falling by 11.71%, and "Nikkei 225" falling by 9.25%. Investment letter said that Taiwan stocks, Fei Ban, Korean stocks, and Japanese stocks are also among the world's major stock markets. They have risen the most this year. Therefore, the relative selling pressure is also greater.

Among them, in terms of Taiwan stocks, the Financial Supervisory Commission's "short restriction order" came into effect on Monday, reducing the number of daily intraday borrowing and selling orders. At the same time, it increased the margin ratio of securities lending for listed OTC companies to stabilize stock market confidence.

Shen Jianhong, manager of Taishin Taiwan Small and Medium-sized Active ETF Fund (00416A), said that in the long term, the AI ​​trend has not changed. The market predicts that the profit momentum of Taiwan stock companies will continue to be strong from 2026 to 2027, and even reach double-digit growth. The technical side will be healthy, and the chips will be effectively accumulated, which will further help the long-term performance of Taiwan stocks. Therefore, there is no need to be pessimistic in the long term, and Taiwan stock ETFs can be arranged in batches to take advantage of the sharp decline.

Taishin Investment Trust said that although AI construction has encountered obstacles due to political factors in the short term, it will take time for companies to adjust their capital expenditure strategies and plans (whether they continue to invest in the United States or invest in AI data centers elsewhere). The AI ​​supply chain may undergo a 1 to 2 quarter adjustment period, as well as EPS estimate revisions. The stock price is reflecting and falling; in addition, the financing balance of Taiwan stocks is still high, with the financing balance decreasing by only 11.8% as of 11/5. It is expected that the pressure of financing cuts will increase significantly. Therefore, "Taiwan stocks may still need time to adjust this week."

From a technical perspective, the Taiwan stock market has fallen by more than 20%, and has fallen below the annual line on 11/6. After the financing is cut off, the decline of Taiwan stocks will meet the historical and long-term average decline. Judging from historical experience, the financing balance after the financing is cut off will be conducive to the rebound of Taiwan stocks.

Shen Jianhong emphasized that in the long term, the trend of AI will not change, corporate profits are expected to continue to rise, and the business performance of the AI ​​group in 2027 is expected to remain strong. In addition, in the past 20 years, Taiwan stocks have a high probability of rising from November to the first quarter of the next year, which will still reflect the dream market of the next year. Therefore, after systemic risks, Taiwan stocks do not need to be pessimistic and should still choose the best layout.