Taiwan Stock Market Pre-Opening News: Trading Suspension Rules Overhauled, Foreign Investors' Futures Short Positions Break 90,000 Contracts, Retail Frenzy Buying 0050

August 4 Taiwan Stock Market Press Release

1. On August 3, the Taiwan stock market stood out among Asian markets, closing at 43,386 points, up 266 points, firmly above the 10-day moving average. However, foreign investors simultaneously increased short positions in both futures and spot markets, adding over 7,000 new short contracts, pushing net short positions past 90,000 contracts, a historical high. In the spot market, they sold off second-tier foundry and panel stocks including UMC, Powerchip, Innolux, and AU Optronics, with combined net sales reaching 150,000 lots.

2. The Taiwan Stock Exchange held an emergency press conference on the afternoon of August 3, announcing revisions to the 'Rules for Monitoring and Regulating Securities.' To enhance trading efficiency and maintain market order, starting August 10, 2026, the suspension period for regulated stocks will be significantly shortened. The matching frequency will be uniformly accelerated from the current 5 or 20 minutes to approximately every 2 minutes. Additionally, the exchange will relax the criteria for high-priced stocks to be designated as monitored securities and establish a semi-annual review mechanism.

3. The Taiwan stock market surged in July amid extreme volatility, but investors clearly adopted a buy-the-dip strategy. The latest data on Taiwan ETF investor counts shows that the two largest ETFs by market cap, Yuanta Taiwan Top 50 (0050-TW) and Yuanta Taiwan 50 Bull 2X (00631L-TW), ranked first and second in weekly growth. The number of 0050 investors surpassed 3.5 million, exceeding TSMC's investor base by nearly 500,000, setting another historical record.

4. On August 3, the exchange announced that starting August 10, the suspension period for individual stocks will be shortened to 5 days (7 days for day traders with penalties), with matching occurring every 2 minutes. Market participants are asking whether Taiwan will follow the U.S. and South Korea in introducing a 'circuit breaker' mechanism. The exchange clearly stated it has no current plans, citing that Taiwan already has a 10% daily price limit and intraday price stabilization measures sufficient to cool markets and maintain order.

5. The Labor Fund Management Board released strong results for the first half of the year. As of June 30, the total fund size reached NT$8.8955 trillion, with investment gains of NT$2.2024 trillion and a cumulative return rate of 28.46%, setting a new historical high. Benefiting from the TAIEX surpassing 46,000 points and strong AI technology demand, the average dividend per participant in the new retirement pension fund reached NT$111,600, with all fund performance showing steady growth.

6. Memory module manufacturer TeamGroup (4967-TW) announced its Q2 financial results on August 3. Benefiting from continued price increases in DRAM and NAND Flash, the company posted a quarterly net profit of NT$2.412 billion, up 5.14% quarter-on-quarter and a staggering 21,827% year-on-year. Earnings per share (EPS) reached NT$26.47, a new historical high, with first-half cumulative EPS reaching NT$53.44.

Foreign investors turned net sellers of NT$18.7 billion. Futures net short positions exceeded 90,000 contracts for the first time, withdrawing 150,000 lots from two stock groups.

(Taiwan Dollar) Stock and forex markets diverged! The TWD sharply depreciated 1.46 cents but held the 32.5 level, with a near 3-cent spread between high and low.

Investor Alert! TWSE: Suspension period for regulated stocks shortened to 5 days, matching every 2 minutes. Effective August 10.

Shorter suspension period. First OTC regulated stock to exit under new rules on August 10.

Unfazed by market crash fears! 0050 investor count surpasses 3.5 million, leading TSMC by nearly 500,000.

Will Taiwan follow U.S. and Korea with a 'circuit breaker'? TWSE says no for now—existing 10% limit and price stabilization measures are sufficient.

Labor Fund earns NT$2.2 trillion in H1 with 28.46% return. Average payout for new retirement fund participants surges past NT$110,000.

TeamGroup Q2 EPS at NT$26.47 hits new high. First-half profit exceeds 5x paid-in capital.

Number of ETFs with over 1 million beneficiaries expands to 6. Active ETFs 00403A and 00981A join the list.