Why does a margin loan drop signal a stock rebound?

A sharp decline indicates selling pressure has exhausted, often preceding a market bottom and recovery.

Is Analyst Yang Yu-Hua’s track record reliable?

He accurately predicted last year’s rebound, and his transparent daily analysis builds strong credibility.

What is a safe P/E ratio for AI stocks?

Typically 15–25x for high-growth AI firms, depending on sector and earnings stability.

Taiwan Stock Market Poised for Major Rebound – Should You Flee Today?

Published Jul 20, 2026 9:45 AM ・ Updated Jul 20, 2026 10:08 AM ・ 5 min read ・ Source: PR Times

Last Friday saw a historic third-largest margin loan reduction of NT$27.6 billion, reminiscent of the 2023 tariff-induced market crash. Analysts predict a strong market rebound and advise investors to strengthen portfolios by eliminating weak stocks and focusing on high-potential AI-related companies.

Last Friday, margin financing in Taiwan's stock market dropped by NT$27.6 billion—the third-largest decline in history. The top two declines occurred during last year's tariff-related market crash: NT$33 billion on April 9 and NT$28.5 billion on April 8, which marked the deepest downturns in the Taiwan stock market. However, as many investors recall, those who bought stocks during last year's crash have already multiplied their returns. The Taiwan stock index surged from around 17,000 to a recent high of 48,000, gaining over 30,000 points. The current margin financing situation on July 17 closely resembles that of last year’s tariff crisis, leading analysts to predict a significant rebound.

Nonetheless, investors are advised to focus on key technical lines for small- and mid-cap AI stocks from July 20 to 22. For established AI stocks, they should use the P/E ratio safe-buying data shared in the analyst’s program to implement a strategy of 'eliminating weak holdings and concentrating on strong performers.' Remember, stocks do not rise or fall every day—they follow a rhythm. Reviewing the market movements after last April’s tariff crash or watching the July 17 YouTube episode will clarify why portfolio optimization is crucial during upswings.

Additionally, TSMC, MediaTek, Delta Electronics, Foxconn, Quanta Computer, Wistron, and Wiwynn are expected to see their P/E ratios return to safe buying levels between July 20 and 24. Use the keyword [721] to access this data and identify precise buy/sell points. The July 17 YouTube episode provides a full explanation—re-watching it will be beneficial for those who missed it.

For daily updates on high-momentum stocks, refer to the free LINE market analysis articles.

【Join Analyst Yang Yu-Hua’s LINE@ Fan Club for Real-Time Stock Picks】

Click the link below to join:

https://lin.ee/fmIIRhL

【Subscribe to Analyst Yang Yu-Hua’s YouTube Channel for Daily In-Depth Market Analysis】

Click the link below to subscribe:

https://www.youtube.com/channel/UCK1TfbeSlR0jc733Ep83Xfg

Source: Moore Securities Investment Advisory — Analyst Yang Yu-Hua

The company has no improper financial interests in the securities it analyzes and recommends. Past performance does not guarantee future profits. Investors must make independent judgments, conduct careful evaluations, and assume all investment risks.

FACT BOX

Source: PR Times
Category: News
Dates in source: 7/17 / 7/20

Taiwan Stock Market Poised for Major Rebound – Should You Flee Today?

⚡ Key Points

FACT BOX

Editorial & Verification Standards

FAQ

Cite this article — HOW TO CITE

AI CRAWLER ACTIVITY