Guoan Fund is so powerful! Taiwan stocks turned sharp V and rebounded by 6420.1 points
Quick Look
- The Taiwan stock market last Friday was due to the US Democratic Party's plan to impose an AI ban after the victory.
- The Philadelphia Semiconductor Index plummeted 12.25%, with the weighted index hitting the lowest point of 37837.05 points.
- TSMC's opening limit fell, and financing calls were fired.
AI-generated summary
Why It Matters
The Taiwan stock market crashed from a historical high of 49968.92 points to 37837.05 points, a drop of 24.27% in just one month. Financing calls triggered thousands of arrows and investors suffered heavy losses. Guoan Fund announced its tenth time to protect the market after the market closed last Friday, and it sharply pulled closer to 2,500 points from the low during the session.
Taiwan stocks rose for three consecutive days and returned to the 10-day line. (File photo)
[Reporter Zhuo Yijun/Report from Taipei] As the US Democratic Party intends to impose an AI ban after its victory, AI concept stocks are on the run. The Philadelphia Semiconductor Index plunged 12.25% last Thursday. The stock market crash hit. The Taiwan stock market opened directly above the 40,000-point mark on Friday. Even TSMC (2330) fell by the limit at the opening. The weighted index reached as low as 37837.05 points, rising from a historical high of 499 in just one month. 68.92 points fell by 12131.87 points, a drop of 24.27%. Financing calls were fired, and investors suffered heavy losses. Last Friday, it was reported that the National Security Fund was about to enter the market to protect the market. The market sharply pulled close to 2,500 points from the low. The National Security Fund announced after the market that it would protect the market for the tenth time. Taiwan stocks rose for three days in a row this week, rising sharply by 6420.1 points from the lowest point last Friday, resolving the crisis of collapse.
Uni-President Securities pointed out that the U.S. CPI (Consumer Price Index) in October was higher than expected, pushing up the possibility of interest rate hikes in December. The rise in U.S. bond yields dragged U.S. stocks back down yesterday and returned to Taiwanese stocks. Thanks to the entry of Guoan Fund to support the market, the market has rebounded by more than 5,000 points in the short term. Currently, short-term technical indicators are crossing upward at a low level, coupled with TSMC's high revenue and dividend hikes, etc., which is conducive to the continuation of the short-term rebound. Suspicions about the Weihuida case continue to spread, AI technology stocks are affected by the uncertainty of U.S. policy, and foreign investment spot futures continue to adjust. It is recommended to rebound, eliminate the weak and retain the strong, strictly control shareholdings, prioritize the deployment of technology leaders in batches, and diversify allocations with defensive stocks and high-dividend stocks.
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What to Watch
AI outlook — possibilities, not facts
Taiwan stocks’ short-term rebound may continue
Possible · Within days
Open Questions
- What are the specific capital scale and operational details of Guoan Fund’s support?
- How will the subsequent development of the Huida case affect Taiwan stocks?
- What is the duration and strength of foreign capital futures spot adjustment?
