Taiwan equities rebounded sharply today (28th), with the TAIEX closing up 939.35 points at 47,035.58, up 2.04%, retaking the quarterly moving average of around 46,398 points and the 47,000整数关卡. Today's turnover was 7,221.35億元, down from the previous peak. Whether trading volume can recover will be a key indicator of the rebound's sustainability. Based on the close, Taiwan equities are about 6.3% away from 50,000 points, putting the cross-year rally back in focus.
ETF Popularity Hits New High as Institutions Buy in Unison
Funding conditions showed signs of warming, with the number of Taiwan ETF beneficiaries rising by 329,000 last week to 19.58 million, a fresh record high. Today, foreign investors, investment trusts, and dealers all posted net buying, totaling 29.894 billion in net buying. Central bank Governor 楊金龍 said today at the Legislative Yuan that compared with Korea, foreign investors favor Taiwan equities more, mainly due to Taiwan's sound economic fundamentals and relatively stable financial and exchange-rate environment.
00991A Up 4.62%, Tops Large Active ETFs
As buying returned, the performance of large active ETFs drew attention. Based on October 28 closing data, there are 4 active ETFs on the market with assets exceeding 50 billion, among which 主動復華未來50 (00991A) rose 4.62%, ranking first in its peer group, with a single-day gain about 2.26 times that of the TAIEX. As of October 28, 00991A had assets of about 71.4 billion, ranking fourth among active ETFs by size, remaining firmly in the large active ETF group and reflecting its capital base and market visibility.
Looking at 00991A's performance today, 39 of its 50 constituents closed higher, with gains mainly from AI hardware supply chains including PCB and substrates, CCL copper-clad laminates, memory, thermal solutions, and IC design. Today's market was led by electronic components and printed circuit board groups. 00991A's allocation to related industries is about 30%, fully participating in this rebound, while maintaining flexibility in its allocation to heavyweight stocks, allowing the fund to show stronger upside momentum during the market rebound.
Challenging 50,000: Three Indicators and the AI 2.0 Theme
Institutional analysis points to three short-term indicators for whether Taiwan equities can challenge 50,000. First, earnings from large U.S. technology stocks and cloud capital expenditure outlooks, which affect order continuity for the AI supply chain; second, memory pricing and supply-demand changes, which affect whether the strongest rebound groups can stay strong; third, Taiwan market turnover and whether 台積電 can hold steady, which will determine whether the rally broadens or fades quickly. The AI industry is moving from the training-led 1.0 phase toward the inference- and application-driven 2.0 phase, with continued server specification upgrades driving simultaneous growth in demand for high-end substrates, memory, thermal, and power components, and the industry's growth phase is not yet over. As fourth-quarter institutional window-dressing heats up, along with expected AI industry orders and corporate earnings growth in the first quarter of next year, Taiwan equities still have a chance to challenge 50,000.