The TAIEX fell 3.76% on July 29 as foreign investors sold a net NT$22.25 billion in listed shares, with active ETFs and technology names bearing some of the heaviest pressure.
Taiwan stocks came under heavy pressure on July 29, with the TAIEX dropping 1,564.18 points, or 3.76%, to 40,039.18 as turnover surged to NT$1.08 trillion ($33.4 billion). Foreign investors sold a net NT$22.25 billion ($687.9 million) in listed stocks, and market focus turned to aggressive liquidation in both active and passive ETFs. Active ETFs featured prominently in foreign selling. Seven of the top 20 listed ETFs sold by foreign investors were active products, and the six most heavily sold ETF names included several active funds. Uni-President Upgrade 50 (00403A) led the selling for a fourth straight trading day, with 144,579 shares sold on July 29 and about 416,000 shares unloaded over four sessions, representing roughly NT$3.74 billion ($115.6 million) in withdrawals. Its price briefly touched a record low of NT$8.36 before closing at NT$8.46, down 6%. Other active ETFs also fell sharply, including Uni-President Taiwan Growth (00981A), Fuh Hwa Future 50 (00991A), Fubon Taiwan Glory (00405A), Capital Technology Innovation (00992A) and Cathay Momentum High Dividend (00400A). Across those six active ETFs, foreign investors sold a combined 378,000 shares in one day, with capital outflows exceeding NT$5.08 billion ($157.0 million). Large passive ETFs such as Yuanta Taiwan 50 (0050) and Yuanta Taiwan High Dividend (0056) also saw sizable selling. Among individual stocks, foreign investors sold heavily into memory-chip makers Winbond and Macronix, while TSMC, financial shares and some traditional-sector names also faced pressure. Analysts said persistent selling of active ETFs can force managers to redeem and liquidate underlying holdings, amplifying declines in constituent stocks during volatile markets. With Taiwan equities down more than 2,000 points from their recent peak over the past week, investors are watching whether foreign outflows and pressure on ETF net asset values begin to ease.