Taiwan Plunges Over 1,000 Points as Foreign Investors Sell Over NT$100 Billion
Taiwan equities opened lower and moved down on the 30th, with the weighted index closing at 45,211.83 points, down 1,156.50 points, or 2.49%, with turnover of approximately NT$879.257 billion. According to chip data released by the Taiwan Stock Exchange, foreign investors sold a net NT$112.467 billion yesterday, showing heavy selling pressure. Among the moves, foreign investors sold more than 97,000 lots of Yuanta Taiwan 50 (0050), drawing market attention, with the related moves sparking discussion online, with some netizens describing it as selling the原型 to shift into 2x leveraged products, adding leverage.
Shift Into Leveraged ETFs: Four 2x Products Draw NT$228 Million
On the buy side for ETFs, foreign investors bought a total of four leveraged ETFs yesterday, including Yuanta SSE 300 2x (00637L), Capital Taiwan Weighted 2x (00685L), Yuanta Taiwan 50 2x (00631L), and CTBC China 50 2x (00753L), with combined net buying of 13,000 lots for NT$228 million. According to TWSE statistics, foreign investors bought 4,888 lots of Yuanta SSE 300 2x (00637L) yesterday, ranking third among listed ETF net buys; Capital Taiwan Weighted 2x (00685L) saw net buying of 3,854 lots, ranking fifth; Yuanta Taiwan 50 2x (00631L) saw net buying of 2645 lots, ranking eighth; and CTBC China 50 2x (00753L) saw net buying of 2,282 lots, ranking ninth.
Buying Bonds on Weakness: Four Funds See 21,000 Lots Bought
Although the U.S. Federal Reserve paused rate hikes in October, long-term U.S. Treasury yields remained around 5% at elevated levels, pushing bond prices lower and attracting bargain-hunting flows into bond products. Foreign investors bought four bond ETFs yesterday, including Capital Preferred Non-Investment Grade Bonds (00953B), KGI US Non-Investment Grade Bonds (00945B), Active AllianceBernstein Global Non-Investment Grade (00984D), and Capital ESG Investment Grade Bonds 0-5 (00985B), totaling 21,000 lots for NT$234 million. Among them, Capital Preferred Non-Investment Grade Bonds (00953B) attracted net buying of 9,993 lots, ranking second among listed ETF net buys, and has now been bought for six consecutive sessions totaling 22,000 lots for NT$219 million. In addition, Fubon FTSE Real Estate (00712) saw net buying of 34,095 lots, ranking first; and Active Uni-President Global Innovation (00988A) saw net buying of 2,183 lots, ranking tenth. Investors should make independent judgments, carefully evaluate risks, and bear their own investment risks.