Taiwan’s stock market recorded its largest single-month point decline in history in July 2026, falling a cumulative 3,006 points as prices and trading volumes weakened. The securities transfer deposit balance, a widely used barometer of retail investor sentiment, fell NT$241.3 billion, or approximately $7.6 billion, to NT$4.18 trillion, or approximately $131.4 billion, a four-month low and its second consecutive monthly decline. Margin balances fell to NT$673.5 billion, or approximately $21.2 billion, from more than NT$800 billion, or approximately $25.1 billion, in June. Domestic individual investors’ share of turnover fell below 50% to 48.9% from 51.5%, while domestic institutional and foreign institutional shares rose to 12% and 39.1% as the overall market contracted. Central Bank Executive Officer Liu Shu-min said retail investors are generally more sensitive to short-term volatility and may exit earlier, while institutions may remain invested when fundamentals appear sound. Foreign investors’ NT dollar deposits rose to NT$312.5 billion, or approximately $9.8 billion, the highest level since June 2021, suggesting some funds remained in Taiwan for possible re-entry rather than being remitted abroad. Net foreign capital outflows contributed to slower money-supply growth: M1B rose 7.34% year-on-year and M2 rose 7.42% to TWD 70,225 billion, down from 8.13% in June. M2 fell 0.09% month-on-month, while average growth for the first seven months was 6.60%. Foreign-currency deposits reached a record NT$9.59 trillion, or approximately $301.4 billion, supported mainly by exports and manufacturers’ sales proceeds. Loans and investments at all monetary institutions grew 9.07% year-on-year, while the adjusted rate including life insurers rose to 7.40%.