Taiwan’s Net Equity Ratio Reaches the Upper Margin  

Taiwan stocks have recently fluctuated higher. Foreign investors have bought over Taiwan stocks worth 17.6 billion yuan. This is the third consecutive trading day. Only three trading days passed in June. Replenish Taiwan shares of 34.796 billion yuan! However, there are still uncertainties in the New Crown epidemic, as well as  China-US trade war variables. Guo Jingwei, a manager of Yuanta Investment and Taiwan Stocks and Greater China Investment Department, believes that with the past 20 years of experience, the ratio of Taiwan stocks to net value is about 1.4~ 1.9 times, and the current ratio of Taiwan stocks to net value is about 1.8 times, the net value of Taiwan stocks has reached the historical upper margin zone, so every rallies should pay attention to the index pressure back, the estimated index consolidation range is between 8000 ~ 12000 points.

Yuan Mei Investment Chief Investment Officer Zhang Meiyuan said that June is a key for Taiwan stocks. Since May, foreign capital has continued to sell more than Taiwan stocks, but domestic investment has supported the index, which has made the index stand up again in the near future. See if foreign capital is covered.

Guo Jingwei believes that the current investment is mainly based on the theme of profit growth year by year, and is optimistic about niche ICs, cloud servers, industrial automation and consumer bicycles, textiles and sports shoes.

As for the biotech stocks whose gains have risen so much, Guo Jingwei reminded investors to beware of “swinging demons”, that is, stocks that have no profit fundamentals and only rely on the atmosphere of chips and news.

Reviewer overview

Taiwan's Net Equity Ratio Reaches the Upper Margin   - /10


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