A majority of Taiwanese investors remain optimistic about local equities despite heightened market volatility, a joint survey released yesterday by Line Bank Taiwan Ltd (連線商業銀行) and JPMorgan Asset Management’s Taiwan unit showed.
About 58 percent of respondents expressed a positive outlook on Taiwanese stocks, saying they intend to increase holdings even as geopolitical tensions in the Middle East have clouded the local market.
The TAIEX yesterday slid 821.38 points, or 2.45 percent, to 32,722.5, as foreign institutional investors sold a net of NT$83.92 billion (US$2.61 billion) of shares and proprietary traders trimmed holdings by NT$31.11 billion, Taiwan Stock Exchange data showed.
Photo: CNA
The survey also highlighted sustained momentum in exchange-traded funds (ETFs) among retail participants.
The number of Taiwan ETF beneficiaries surged by about 597,000 this month, with a significant portion of inflows directed toward actively managed ETFs, Taiwan Depository and Clearing Corp (台灣集保) data showed.
About 55 percent of investors said they have incorporated actively managed ETFs into their portfolios, underscoring growing acceptance of the products as an investment tool, the survey showed.
Investor appetite appears to cut across experience levels. Among respondents with more than five years of experience investing in local shares, nearly 69.7 percent said they plan to actively expand their positions.
Even among investors with no prior experience in local stocks, 43.3 percent said they would consider making small investments, suggesting that the TAIEX’s rally above 30,000 points has attracted new market participants.
Despite the optimism, the survey highlighted barriers discouraging participation in newly issued ETFs, particularly among younger investors.
About 74.4 percent of respondents younger than 29 cited cumbersome administrative procedures as the main obstacle preventing them from subscribing to new ETF offerings — nearly double the proportion who pointed to fees as a deterrent.
Across all age groups, the most frequently cited concern was transaction and remittance costs, mentioned by 38 percent of respondents. Another 35 percent said they are unable to visit brokerage offices in person because of work commitments.
Other complaints included excessive paperwork after subscriptions, limited access to certain ETF offerings through regular brokerage accounts, and the need to complete additional bank transfers after placing subscription orders.
About 30 to 33 percent of respondents said the hurdles highlight the need for a more streamlined subscription process.
The findings suggest Taiwan’s increasingly digital-savvy investors are pushing financial institutions to simplify investment procedures while broadening access to new financial products.
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