Foreign investors are holding onto billions of dollars in cash in Taiwan, indicating potential optimism among equity bulls who believe a recent market downturn will be temporary. Between January and September 2024, global funds sold a net $16.9 billion worth of shares on the Taiwan Stock Exchange. However, they simultaneously injected a net $29.5 billion into the island, showcasing a robust capacity for future investments in Taiwanese stocks.
This situation points to a complex dynamic in the Taiwanese market, where despite significant profit-taking, investor confidence remains relatively high. The substantial cash reserves could lead to increased market activity in the coming months, potentially stabilizing or boosting stock prices.
The implications of this trend are noteworthy for the international investment community, as a resurgence in Taiwanese equities could influence broader market sentiments in Asia and beyond.