Taiwan Stock Market Tumbles: Analyzing the Recent Downturn and Its Impact

Examining the Sudden Plunge of the Taiwan Stock Exchange and the Implications for Investors

The Taiwan Stock Exchange (台股) experienced a significant downturn on the 9th, plummeting by 1,068 points and reaching a low of 17,306 points. This drop has sparked considerable interest in the status of any potential defaults.

According to the Taiwan Stock Exchange's report on the 11th, the total value of reported defaults in the centralized market, combining both purchase and sale amounts, reached NT$42.37 million. After offsetting the buy and sell transactions, the net default was a mere NT$1.05 million, indicating market stability. No specific stocks met the disclosure criteria.

The impact of unexpectedly high tariffs (關稅) from the United States had a significant ripple effect across global financial markets. Following the Qingming Festival holiday, the Taiwan stock market experienced a correction. From the 7th to the 9th, the market witnessed a cumulative decline of nearly 4,000 points, representing an 18% decrease. The index briefly touched 17,306 points, nearing the 5-year moving average. Substantial selling pressure emerged, and margin financing in the centralized market decreased by NT$75 billion over the same period, leading to a significant downturn for bullish investors.