Overseas investors sold net NT$62.6B of Taiwan shares

Overseas investors sold net NT$62.6B of Taiwan shares

Overseas investors sold net NT$62.6 billion of Taiwan shares in the last 10 days, as per data from the Taiwan Stock Exchange Corporation [4]. This represents a significant net sell-off, highlighting the recent trend in foreign and institutional investor sentiment towards the Taiwanese market.

The data, which includes purchases and sales by foreign investors, securities investment trust companies, and dealers, indicates a substantial decline in the net value of shares traded by these entities. This figure marks a notable shift in investor behavior, suggesting a potential cooling of interest in the Taiwanese stock market.

The ongoing consolidation in Taiwan’s financial services industry, as seen with the potential sale of Mercuries Life Insurance Co., could also be influencing investor decisions. Mercuries Life, a major player in the Taiwanese insurance sector, is exploring options including a sale of the business to attract local and international players [2]. The company's recent market value of about $1 billion, following a 17% drop this year, highlights the challenges faced by the sector due to regulatory pressures and currency fluctuations.

In contrast, Taiwan Semiconductor Manufacturing Company Limited (TSMC) has seen robust financial performance, with a 22.5% revenue increase in July and a market cap of approximately $1001.2 billion [3]. Despite some volatility, TSMC's strong financial performance and strategic positioning in advanced technologies continue to attract investor interest. MIG Capital recently boosted its stake in TSMC by 10,019 shares, reflecting confidence in the company's long-term prospects [3].

The global push by TSMC to expand its manufacturing footprint, including planned investments in the United States and Europe, is aimed at securing leadership in advanced chip manufacturing and addressing geopolitical concerns. However, this expansion strategy is anticipated to impact the company's profitability, with gross margins expected to shrink in the short term [5].

Overall, the net sell-off by overseas investors in Taiwan shares underscores the current market dynamics, influenced by regulatory changes, currency fluctuations, and strategic moves by key players in the financial and semiconductor sectors. Investors should closely monitor these developments and adjust their strategies accordingly.

References:
[1] https://www.tpex.org.tw/en-us/mainboard/trading/statistics/month.html
[2] https://www.bloomberg.com/news/articles/2025-08-19/taiwan-s-mercuries-life-is-said-to-weigh-options-including-sale
[3] https://www.ainvest.com/news/taiwan-semiconductor-manufacturing-company-limited-hedge-fund-mig-capital-boosts-stake-2508/
[4] https://www.twse.com.tw/en/trading/foreign/mi-qfiis20.html
[5] https://www.nasdaq.com/articles/tsms-overseas-fabrication-push-ramps-are-margins-sustainable