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Taiwan Stocks Plunge Over 1,600 Points as Foreign Investors Offload $3.3 Billion

Finance · Investment Managers · economic_daily · 2026-11-03

Taiwan's stock market saw a massive sell-off as foreign investors dumped over NT$100 billion in shares, primarily targeting ETFs, though analysts remain cautious about calling a bear market.

What Happened

Market Sell-off: The Taiwan Stock Exchange Weighted Index plummeted 1,612.60 points to close at 43,307.54, with trading volume reaching NT$928.06 billion. While the main index has corrected 13.08% from its October peak, the OTC index has entered a deeper correction phase, down 23.81% from its June high.

Foreign Investor Activity: Foreign institutional investors offloaded NT$107.31 billion in shares, marking the eighth-largest single-day sell-off in history. The selling was heavily concentrated in ETFs, such as the CTBC Taiwan Yield and Uni-President Taiwan Growth funds, while buying interest was led by Taiwan Glass.

Bear Market Debate: Senior market analyst Chien Po-yi noted that while the sharp decline has sparked bear market fears, the long-term moving averages remain upward-sloping. He argued that it is premature to label this a structural bear market, as the current correction is less severe than the one experienced in July.

Outlook: The current market action is viewed as a short-term correction within an ongoing bull trend rather than a fundamental shift. Analysts suggest that while the market lacks immediate signs of stabilization, a rebound is possible if international market conditions remain steady.

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