Taiwan Stock Market Plunges 2,000 Points, Is a Margin Call Crisis Coming? FSC Reassures on Fundamentals, Says 'Fluctuations Are Normal'

Affected by the global stock market downturn, Taiwan's stock market was unable to remain immune. Today (28th), it closed down 2,030.83 points, or 4.65%, marking the third-largest point decline in history. Huang Hou-Ming, Deputy Director of the FSC's Securities and Futures Bureau, stated at a press conference that the overall margin maintenance rate for credit transactions, as of the 27th, stood at 175%, with the margin call threshold at 130%. This implies that the market has not yet triggered a widespread margin call crisis. He also emphasized, 'Market fluctuations, up and down, are very normal.'

Huang Hou-Ming announced at the FSC's regular press briefing today that the price-to-earnings (P/E) ratio of Taiwan's centralized market as of the end of June this year was approximately 31.78 times. The cash dividend yield was 1.56%, and including stock dividends, it reached 1.59%. Domestic listed and OTC companies collectively reported cumulative revenues of approximately NT$30.49 trillion by the end of June, representing a 35.96% increase compared to the same period last year.

Today's closing index for the Taiwan stock market was 41,603.36 points, down 2,030.83 points or 4.65%, with trading volume of approximately NT$809.482 billion. At the same time (as of 13:30), major Asian stock markets were performing as follows: Singapore down 0.17%, Shanghai down 1.32%, Hong Kong down 0.21%, Japan down 4.20%, and South Korea down 10.64%.

Additionally, as of July 27, the overall margin maintenance rate for credit transactions was 175.12%, and the ratio of securities lending sales to total market trading value was 3.8%.