Foreign Institutional Investors Halt 3 Months of Net Inflows in August

Taipei: Foreign institutional investors reported a fund outflow in August, ending three straight months of inflows despite gains in the local stock market, according to the Financial Supervisory Commission (FSC).According to Focus Taiwan, FSC data showed an outflow of US$1.37 billion in August, the third highest on record for that month. Converted into Taiwan dollars, the outflow totaled NT$41.8 billion, marking the third largest for August since 2021.The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), still rose 690.58 points, or 2.93 percent, in August after recovering from earlier volatility. Analysts indicated that the outflows suggest foreign investors took profits and repatriated funds along with dividend income.Despite the August pullback, foreign investors posted a net inflow of US$23.38 billion in the first eight months of 2025, reflecting confidence in the local market, the FSC noted. Since Taiwan lifted restrictions on foreign institutional investment at the end of 1990, cumula tive inflows have reached US$306.69 billion.From January to August, foreign investors sold a net NT$220.76 billion in shares on the main board but bought a net about NT$28.50 billion on the over-the-counter market, resulting in a combined net purchase of NT$192.26 billion, the FSC added.Separately, the TWSE reported that the number of stock trading accounts rose by 47,263 in August to a record 13.57 million. Of the new accounts, 19,345 were opened by investors aged 19 or younger and 16,546 by those aged 20-30, together accounting for more than three-quarters of the total.The figures suggest younger investors were more eager than older ones to enter the market in August, the TWSE stated.