Back to list

Taiwan records net foreign fund inflow of US$8.6 billion in 2017

2018/01/03 21:04:44

CNA file photo

Taipei, Jan. 3 (CNA) The net fund inflow into Taiwan by foreign institutional investors in 2017 was US$8.6 billion, a total that was dragged down by the outflow in December, according to the Financial Supervisory Commission (FSC).

After a net fund outflow of NT$1.12 billion by foreign institutional investors in December, the total net foreign fund inflow recorded for 2017 was US$8.683 billion, the FSC said.

For the first 11 months of the year, the net outflow was US$9.80 billion, as foreign institutional investors rushed to adjust their equity investment portfolios in December in an effort to book profits by the end of the year.

In November, foreign institutional investors recorded a net fund inflow of US$1.50 billion.

Despite a net fund outflow for the whole of December, foreign institutional investors recorded a net inflow of US$364 million Dec. 28-29, the last two trading sessions of 2017, after some of them returned from the Christmas holiday.

Boosted by the aggregate net fund inflow in 2017, the Taiwan equity market gained as result of aggressive foreign institutional buying, with the Taiwan Stock Exchange Capitalization Weighted Stock Index on the main board rising 15.01 percent, marking the second consecutive year of gains.

According to the TWSE, foreign institutional investors registered net buying of more than NT$150 billion (US$5.07 billion) on the local main board in 2017.

In mid-May, the weighted index closed above the 10,000-point mark for the first time in 17 years and it remained above that level for the rest of the year.

On Nov. 23, the main board ended the day at 10,854.57 points, the highest level in 2017.

At the end of 2017, the weighted index on the main board closed at 10,642.86 points.

In the first two sessions of 2018, share prices continued to climb, which market analysts attributed to higher liquidity as a result of foreign fund inflows.

On Wednesday, the weighted index rose 0.85 percent to end at 10,801.57 points.

However, no official data on fund flows in the two sessions was immediately available.

Since the government lifted a ban on foreign institutional investment in the local bourse at the end of 1990, Taiwan has recorded a total of about US$208.05 billion in foreign net fund inflows, the FSC said.

(By Tsai Yi-chu and Frances Huang)