Taiwan Stocks Plunge Over 1000 Points, Fall Below Half-Year Line
Taiwan stocks opened lower and moved lower today (30th), plunging over 1600 points intraday and closing down 1156.5 points at 45211.83, with turnover of NT$8777.3億元, falling below the half-year line of 45314 points. Market concerns over the monetization of artificial intelligence investments weighed on heavyweight and AI-related stocks, with a steep broad-market decline. The weekly line fell for 3 consecutive weeks and the monthly line closed in the red, showing rising short-term pullback pressure. Investor sentiment turned cautious, with a strong wait-and-see mood, volume remaining elevated and heavy selling pressure.
Ruan Qinghua: Pullback After Gains Is a Normal Cycle
Ruan Qinghua, Executive Secretary of the National Stabilization Fund and Deputy Minister of Finance serving as trader, today attended the Taiwan Jin UPC Technology 25th anniversary tea party, and said in a media interview afterward that the stock market naturally rises and falls, pulling back after rising too much, and rising again after pulling back to a certain level, which is a very normal cycle. He noted that stocks cannot rise every day, nor fall every day, and that is basically how it works. Only if the economy or the international situation encounters major problems would it warrant some attention, and if there really is a problem, then consider how to handle it. Currently no such major problems have emerged on the industry side.
Ruan Qinghua stressed that unless there are major problems on the industry side, rises and falls are normal. If there really is a problem, they will look at how to handle it. He believes that after pulling back to a certain level, the market will go up again, as part of a natural market adjustment process, and investors should not over-interpret a single-day plunge, but should view the cycle of rises and falls rationally and focus on economic fundamentals and changes in the international situation rather than short-term volatility.
Foreign Investors' Net Sale of Over 100 Billion Is Routine Adjustment
The three major institutional investors sold a combined net 1398.44億元 in Taiwan stocks today, including net sales of 1124.67億元 by foreign and mainland Chinese investors, with single-day foreign net sales exceeding 100 billion yuan drawing market attention. In response, Ruan Qinghua said this is not the first time, and it does not even rank compared with the past. Foreign investors always adjust positions, and cannot be expected to keep buying all the time; they also have to sell, and buying and selling is normal. He noted that foreign-investor adjustment is a market norm and should not be seen as an abnormal signal, and the National Stabilization Fund will continue to monitor economic and international developments.