Has a Reversal Signal Appeared in Taiwan Stocks? Institutions Point to '1 Key', Margin Maintenance Rate Enters Large-Scale Cleanup Phase

Excessive trading in semiconductor stocks gave investors a major shock in late July, with Taiwan and South Korea's semiconductor stocks leading the plunge. South Korean stocks have experienced nine circuit breakers this year, while Taiwan stocks dropped 4,000 points over two trading days and briefly fell below the 40,000-point mark. This correction was driven by concerns over overheating in AI-related stocks and potential Fed rate hikes. Foreign investors sold off $188 billion in Taiwan stocks in June and $200 billion in July. Institutions note that while a technical rebound is expected due to the cleanup of floating shares, rebuilding investor confidence will take time.