Taiwan Stocks Surge 59% in First Half as AI Hardware Demand Fuels Margin Trading

Taiwan's stock market rose 59% in the first half of this year, driven by surging demand for AI hardware and gains in chipmakers such as TSMC. According to ChainCatcher, the rally has also encouraged more retail investors to borrow money through bank loans and home mortgages to buy stocks, pushing margin trading volume up nearly 20% from the first half. Some investors reported large gains, including a real estate worker surnamed Chen who borrowed NT$5 million and said his assets quadrupled in six months. Others suffered heavy losses, including one anonymous investor who said he put in more than NT$10 million, including NT$6 million in mortgage-backed loans, and lost nearly half, with the experience affecting his mental health. Taiwan's Financial Supervisory Commission said overall credit risk remains manageable. It has also posted videos on social media warning young investors about the risk of loan defaults.