ETF's astonishing capital attraction helps Taiwan stocks break free from foreign investment influence
The Taiwan stock market has surpassed 40,000 points, with domestic investors, particularly those attracted by ETFs, becoming the main force supporting the market. This trend allows Taiwan stocks to move independently of foreign capital, especially with the introduction of active ETFs accelerating domestic capital absorption.
📋 Article Processing Timeline
- 📰 Published: May 12, 2026 at 23:21
- 🔍 Collected: May 12, 2026 at 23:31 (10 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 02:59 (3h 27m after Collected)
Central News Agency
(Central News Agency reporter Wu Chia-hao, Taipei, May 12) The Taiwan stock market recently surpassed the 40,000-point mark, led by blue-chip stocks, with foreign and domestic capital exhibiting distinctly different operating logics. After accumulating adjustments of over NT$1 trillion in the past three years, foreign capital's operations this year have shifted to cyclical replenishment and high-point adjustments. In contrast, domestic capital, driven by the ETF (Exchange Traded Fund) craze, has become the most resilient supporting force for Taiwan stocks.
Looking back at foreign capital movements in the past three years, despite the strong fundamental growth driven by the artificial intelligence (AI) wave, foreign capital mostly adopted a conservative adjustment strategy due to global inflation, interest rate environments, and geopolitical factors.
Foreign capital continued to reduce holdings in Taiwan stocks for the past three years, selling NT$695.141 billion in 2024, the second largest in history, only second to NT$1.23 trillion in 2022. However, with the strong support of domestic investment trusts, Taiwan stocks still closed at 23035.1 points in 2024, setting a new closing high for the year, with an annual increase of 5104.29 points.
In 2025, foreign capital continued to adjust, partly because the US implemented reciprocal tariffs impacting global markets, leading to widespread selling pressure. Foreign capital's total net sales reached NT$599.509 billion for the year, the third largest in history; Taiwan stocks, however, showed a "nervous rise" pattern, surging 5928.5 points for the year, closing at 28963.6 points, again setting a new closing high.
As of May 12 this year, foreign capital's cumulative net sales reached NT$446.457 billion, with a significantly accelerated operating rhythm. At the beginning of the year, they sold off due to fluctuations in US bond yields. In April, with clear signs of recovery in AI servers and semiconductors, there was the largest single-month net inflow in history, approximately NT$835.8 billion, initiating a retaliatory replenishment. However, once Taiwan stocks entered the high-oscillation range of 41,000 to 42,000 points, foreign capital once again initiated short-term adjustments, highlighting its cyclical trading nature during the creation of new highs for Taiwan stocks.
Compared to the frequent entry and exit of foreign capital, domestic capital forces, led by investment trusts, have shown strong continuity, almost "buying all the way" since 2024. Among them, passive ETFs, led by 00919 and 00929, have sparked a regular fixed-amount investment trend, establishing a long-term buying base for Taiwan stocks. The Financial Supervisory Commission (金管會) also opened up active ETFs at the end of 2024, breaking the past limitation of only tracking indices and introducing professional managers' stock selection strategies.
Entering 2025 and 2026, active ETFs have become the main force attracting capital to the market. For example, the active Uni-President Top 50 (00403A), listed today, saw its trading volume break through 4 million shares, setting a historical record for a Taiwan stock ETF on its listing day.
Various signs indicate that the capital momentum of Taiwan stocks is no longer entirely subject to US stock or exchange rate movements. Domestic capital buying not only offset foreign selling pressure but also made the chip side of Taiwan stocks more solid during the process of setting new highs. (Editor: Chang Chun-mao) 1150512
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(Central News Agency reporter Wu Chia-hao, Taipei, May 12) The Taiwan stock market recently surpassed the 40,000-point mark, led by blue-chip stocks, with foreign and domestic capital exhibiting distinctly different operating logics. After accumulating adjustments of over NT$1 trillion in the past three years, foreign capital's operations this year have shifted to cyclical replenishment and high-point adjustments. In contrast, domestic capital, driven by the ETF (Exchange Traded Fund) craze, has become the most resilient supporting force for Taiwan stocks.
Looking back at foreign capital movements in the past three years, despite the strong fundamental growth driven by the artificial intelligence (AI) wave, foreign capital mostly adopted a conservative adjustment strategy due to global inflation, interest rate environments, and geopolitical factors.
Foreign capital continued to reduce holdings in Taiwan stocks for the past three years, selling NT$695.141 billion in 2024, the second largest in history, only second to NT$1.23 trillion in 2022. However, with the strong support of domestic investment trusts, Taiwan stocks still closed at 23035.1 points in 2024, setting a new closing high for the year, with an annual increase of 5104.29 points.
In 2025, foreign capital continued to adjust, partly because the US implemented reciprocal tariffs impacting global markets, leading to widespread selling pressure. Foreign capital's total net sales reached NT$599.509 billion for the year, the third largest in history; Taiwan stocks, however, showed a "nervous rise" pattern, surging 5928.5 points for the year, closing at 28963.6 points, again setting a new closing high.
As of May 12 this year, foreign capital's cumulative net sales reached NT$446.457 billion, with a significantly accelerated operating rhythm. At the beginning of the year, they sold off due to fluctuations in US bond yields. In April, with clear signs of recovery in AI servers and semiconductors, there was the largest single-month net inflow in history, approximately NT$835.8 billion, initiating a retaliatory replenishment. However, once Taiwan stocks entered the high-oscillation range of 41,000 to 42,000 points, foreign capital once again initiated short-term adjustments, highlighting its cyclical trading nature during the creation of new highs for Taiwan stocks.
Compared to the frequent entry and exit of foreign capital, domestic capital forces, led by investment trusts, have shown strong continuity, almost "buying all the way" since 2024. Among them, passive ETFs, led by 00919 and 00929, have sparked a regular fixed-amount investment trend, establishing a long-term buying base for Taiwan stocks. The Financial Supervisory Commission (金管會) also opened up active ETFs at the end of 2024, breaking the past limitation of only tracking indices and introducing professional managers' stock selection strategies.
Entering 2025 and 2026, active ETFs have become the main force attracting capital to the market. For example, the active Uni-President Top 50 (00403A), listed today, saw its trading volume break through 4 million shares, setting a historical record for a Taiwan stock ETF on its listing day.
Various signs indicate that the capital momentum of Taiwan stocks is no longer entirely subject to US stock or exchange rate movements. Domestic capital buying not only offset foreign selling pressure but also made the chip side of Taiwan stocks more solid during the process of setting new highs. (Editor: Chang Chun-mao) 1150512
Choose to stand with facts, every sponsorship of yours is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.