Taiwan Stocks Plunge, Margin Financing Sees Record Single-Day Drop

Taiwan's stock market experienced a sharp decline over two days, with a significant drop of over 4,000 points. This downturn was accompanied by a record-breaking single-day reduction in margin financing for listed and over-the-counter (OTC) companies.

According to statistics from the Taiwan Stock Exchange and the GreTai Securities Market, the total margin financing balance decreased by NT$52 billion (approximately $1.6 billion USD) on a single day. This represents a substantial 7.1% reduction. Following this decrease, the margin financing balance for listed companies fell to NT$507 billion, and for OTC companies, it dropped to NT$167.4 billion.

Among listed companies, United Microelectronics Corporation (UMC) saw the largest reduction, with margin financing decreasing by 25,000 shares. Innolux followed with an 18,000-share reduction, and Powerchip Semiconductor Manufacturing Corporation (PSMC) saw a decrease of 15,000 shares.

For OTC companies, the top three in terms of margin financing reduction were First Applied Materials Inc. (First), which decreased by 4,232 shares, Chipbond Technology Corporation, down by 3,645 shares, and Wacom Co., Ltd., which saw a reduction of 3,258 shares. This significant deleveraging indicates a sharp contraction in investor leverage amid market volatility.