Foreign investors sold more than NT$100 billion (US$3.1 billion) in Taiwanese stocks last week, marking the most significant week of overselling in the current year, according to statistics from the Taiwan Stock Exchange.
Over the past three and a half years, foreign investors have withdrawn more than NT$3 trillion (US$93 billion) from Taiwan stocks.
Financial Supervisory Commission Chairperson Huang Tien-mu (黃天牧) met with the legislature’s finance committee on Wednesday on the matter. Huang explained that the current level of foreign capital in Taiwan stocks is still high, accounting for nearly 40%.
KMT legislator Lai Shyh-bao (賴士葆) questioned whether recent withdrawals of foreign capital were related to worries over the risk of war in the Taiwan Strait. Huang said that international concerns over future interest rate hikes in the United States was the main reason for the exit. He adds that from a long-term perspective, it is normal for foreign capital to enter and exit the stock market. Huang says he has confidence in Taiwan stocks.