TWSE data showed elevated hedging and short-selling activity even as market-value balances eased; ETF lending and large-cap names remained key focus areas across the main board and TPEx.
Taiwan's securities lending balance by market value remained above NT$3.3 trillion on July 29, indicating still-elevated hedging and short-selling activity even after a day-over-day decline. Taiwan Stock Exchange data showed the combined lending balance across the lending system, securities firms and securities finance business offices at NT$3,317,596.76 million, down from NT$3,403,919.61 million the previous day, while total shares lent reached 30,896,965. Activity stayed concentrated in large-cap names and ETFs, including a rise in lending for the Yuanta Taiwan Top 50 ETF, while TPEx share balances rose even as market value fell, reflecting the effect of lower underlying prices. Institutional and market sources said the figures may signal cautious positioning by foreign investors, but noted securities lending is also used for hedging, arbitrage, pair trades and market making, so one day's data should not be over-interpreted.