Foreign Investors Sell NT$45.2 Billion of Taiwan Stocks, Reducing Net Short Positions in Index Futures
On the 18th, while foreign investors sold off NT$45.2 billion in Taiwan stocks for the second consecutive day, they simultaneously reduced their net short positions in Taiwan Stock Index Futures. Analysts interpret this as a balanced, hedge-focused strategy, indicating that foreign capital is not decidedly bearish on the market.
📋 Article Processing Timeline
- 📰 Published: May 18, 2026 at 18:56
- 🔍 Collected: May 18, 2026 at 19:01 (5 min after Published)
- 🤖 AI Analyzed: May 18, 2026 at 20:30 (1h 28m after Collected)
(CNA, Taipei, 18th, by reporter Chung, Jung-feng) The Taiwan stock market today saw a 721-point lower shadow, closing down 280.54 points at 40891.82, with a turnover of NT$1.025628 trillion. Foreign investors sold a net NT$45.2 billion today, marking the second consecutive day of selling. However, they reduced their net short positions in Taiwan stock index futures to below 50,000 contracts. Analysts suggest that foreign investors' net short positions are primarily for hedging, indicating a balanced operation between the spot and futures markets.
The three major institutional investors sold a net total of NT$43.45 billion in Taiwan stocks today. Of this, proprietary traders sold NT$13.926 billion, investment trusts bought NT$15.717 billion, and foreign and mainland Chinese investors sold NT$45.241 billion. According to statistics, foreign investors have sold Taiwan stocks for two consecutive trading days.
In terms of net positions in Taiwan index futures, the three major institutional investors today reduced their net short positions by 4,768 contracts to 3,723 contracts. Foreign investors reduced their net short positions by 5,967 contracts, bringing the total net short position below 50,000 to 44,996 contracts.
According to the Taiwan Stock Exchange, foreign investors' net purchases today did not exceed 20,000 shares for any single stock. The eight stocks with over 10,000 shares bought were mainly ETFs, including Capital U.S. Corporate High Yield Bond, Cathay Momentum High Dividend, Wus Printed Circuit, Yuanta Global AI New Economy, Capital Group US Growth, Yuanta NASDAQ Select, Capital Tech Innovation, and Ching Teng. Foreign investors bought a net 1,667 shares of Hon Hai today, marking the second consecutive day of buying.
Foreign investors today sold a net 85,800 shares of Uni-President UPGRADE 50, and reduced their holdings in UMC and Yuanta Taiwan 50 ETF by about 45,900 and 43,200 shares, respectively. They also adjusted their holdings in KGI Fund and Innolux by about 27,800 and 26,500 shares. Other stocks sold in quantities over 10,000 shares include Cathay Sustainable High Dividend ETF, Winbond, Powerchip, TCC, Taishin-Shin Kong Gold, Nanya, Nomura Taiwan High Dividend, First Financial, Evergreen, and Chang Hsing. Foreign investors sold a net 9,522 shares of TSMC today, the second straight day of selling.
Observing the movements of foreign investors in the Taiwan stock market, Yung Yi-shen, Vice President of CFEV Consulting, analyzed in a telephone interview that although foreign investors have been net sellers for two consecutive days, they have not significantly expanded the scale of selling. Furthermore, their net short positions in index futures have not increased, suggesting their operations are mainly for hedging. "Foreign investors are temporarily neither bullish nor bearish," operating in a balanced manner in both spot and futures markets.
Looking ahead, Yung stated that the bullish structure of the Taiwan stock market can continue, but caution is needed regarding the high overlap in high-priced stocks held by some ETFs, and whether the frequency of stock replacement will accelerate, leading to subsequent chain reactions. Overall, the Taiwan stock market has strong support around the 40,000-point level.
Yung analyzed that some ETFs show a phenomenon of being overly concentrated in holding certain high-priced stocks. If selling pressure on a specific stock triggers the risk control bottom line of investment trusts, it could induce a chain of selling, significantly increasing the magnitude of the stock index's pullback and volatility.
Regarding international markets, Yung pointed out the need to continue monitoring the progress of the Trump administration's negotiations with Iran, whether it can effectively resolve the U.S.-Iran conflict and ensure free passage through the Strait of Hormuz, thereby reducing market inflation concerns. Additionally, the interest rate direction before and after the inauguration of Kevin Warsh, the successor to the Fed chairman, is also a key point of observation.
Yung analyzed that inflation variables and the short-term reaction of the bond market affect U.S. stock trends, but the impact of inflation should be limited. This week's focus is on the earnings report and latest views on AI industry development from AI chip giant NVIDIA, as well as the release of the Federal Open Market Committee (FOMC) meeting minutes. (Editor: Chang, Chun-mao)
The three major institutional investors sold a net total of NT$43.45 billion in Taiwan stocks today. Of this, proprietary traders sold NT$13.926 billion, investment trusts bought NT$15.717 billion, and foreign and mainland Chinese investors sold NT$45.241 billion. According to statistics, foreign investors have sold Taiwan stocks for two consecutive trading days.
In terms of net positions in Taiwan index futures, the three major institutional investors today reduced their net short positions by 4,768 contracts to 3,723 contracts. Foreign investors reduced their net short positions by 5,967 contracts, bringing the total net short position below 50,000 to 44,996 contracts.
According to the Taiwan Stock Exchange, foreign investors' net purchases today did not exceed 20,000 shares for any single stock. The eight stocks with over 10,000 shares bought were mainly ETFs, including Capital U.S. Corporate High Yield Bond, Cathay Momentum High Dividend, Wus Printed Circuit, Yuanta Global AI New Economy, Capital Group US Growth, Yuanta NASDAQ Select, Capital Tech Innovation, and Ching Teng. Foreign investors bought a net 1,667 shares of Hon Hai today, marking the second consecutive day of buying.
Foreign investors today sold a net 85,800 shares of Uni-President UPGRADE 50, and reduced their holdings in UMC and Yuanta Taiwan 50 ETF by about 45,900 and 43,200 shares, respectively. They also adjusted their holdings in KGI Fund and Innolux by about 27,800 and 26,500 shares. Other stocks sold in quantities over 10,000 shares include Cathay Sustainable High Dividend ETF, Winbond, Powerchip, TCC, Taishin-Shin Kong Gold, Nanya, Nomura Taiwan High Dividend, First Financial, Evergreen, and Chang Hsing. Foreign investors sold a net 9,522 shares of TSMC today, the second straight day of selling.
Observing the movements of foreign investors in the Taiwan stock market, Yung Yi-shen, Vice President of CFEV Consulting, analyzed in a telephone interview that although foreign investors have been net sellers for two consecutive days, they have not significantly expanded the scale of selling. Furthermore, their net short positions in index futures have not increased, suggesting their operations are mainly for hedging. "Foreign investors are temporarily neither bullish nor bearish," operating in a balanced manner in both spot and futures markets.
Looking ahead, Yung stated that the bullish structure of the Taiwan stock market can continue, but caution is needed regarding the high overlap in high-priced stocks held by some ETFs, and whether the frequency of stock replacement will accelerate, leading to subsequent chain reactions. Overall, the Taiwan stock market has strong support around the 40,000-point level.
Yung analyzed that some ETFs show a phenomenon of being overly concentrated in holding certain high-priced stocks. If selling pressure on a specific stock triggers the risk control bottom line of investment trusts, it could induce a chain of selling, significantly increasing the magnitude of the stock index's pullback and volatility.
Regarding international markets, Yung pointed out the need to continue monitoring the progress of the Trump administration's negotiations with Iran, whether it can effectively resolve the U.S.-Iran conflict and ensure free passage through the Strait of Hormuz, thereby reducing market inflation concerns. Additionally, the interest rate direction before and after the inauguration of Kevin Warsh, the successor to the Fed chairman, is also a key point of observation.
Yung analyzed that inflation variables and the short-term reaction of the bond market affect U.S. stock trends, but the impact of inflation should be limited. This week's focus is on the earnings report and latest views on AI industry development from AI chip giant NVIDIA, as well as the release of the Federal Open Market Committee (FOMC) meeting minutes. (Editor: Chang, Chun-mao)