Highlights

The Taiwan stock market recently faced challenges with an ongoing struggle against the annual resistance line, indicating potential turbulence in the market. Meanwhile, leasing regulation reforms are advancing, with four companies initially under new oversight. CMG has resumed its production and sales, marking a significant recovery for the company. Key industry players and policymakers are closely observing these developments, particularly with CMG's proactive steps in electric vehicle production.

Sentiment Analysis

• The market sentiment is largely cautious due to the Taiwan stock market's repeated failures to surpass its annual resistance level.
• Investors are watching the regulated leasing sector closely, anticipating the rollout's full impact.
• CMG’s resumed production injects a positive sentiment into the automotive sector.
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Article Text

The Taiwan stock market has been grappling with significant internal and external pressures, revealing weaknesses at the pivotal annual resistance level. On March 26th, the market opened higher only to close lower, dropping 12.9 points to finish at 22,260.29 points. This persistent challenge highlights a market that is sensitive to investor sentiments and external economic policies. Furthermore, foreign investors have been selling off substantial shares of key companies like TSMC and UMC, leading to a substantial foreign capital outflow.

In parallel, a key regulatory development is set to transform the landscape of the leasing industry in Taiwan. The Financial Supervisory Commission, led by Chairman Jinlong Peng, has announced a phased plan for regulating leasing companies. The plan is based on the newly implemented Financial Holding Act and is expected to roll out by late August. Initially, four publicly listed leasing firms will be regulated, followed by more comprehensive coverage in subsequent phases.

While these regulatory measures advance, the automotive sector is witnessing a resurgence. Chinatrust Motor Group (CMG) has announced that its core models are back on track in terms of production and sales, marking a crucial turnaround. CMG plans to launch its own developed electric commercial vehicle, the ET35, by August. Despite these optimistic developments, CMG remains cautious about potential reductions in import tariffs, stressing the potential impact on domestic manufacturers and the extensive workforce involved.

On another significant front, Fubon Bank has been the center of attention due to rumors of an impending acquisition of Antai Bank. While Fubon's management has distanced themselves from commentating on these market rumors, they have expressed a general openness to expansion through bank and trust arm acquisitions. This approach is part of a broader strategy to enhance the scale and capabilities of their subsidiaries.

Lastly, data released in February 2025 revealed a hike in overdue mortgage payments, reaching a three-year high of 79.5 billion NTD. This increase is being closely linked to tightened banking liquidity and minor market volatility, which have squeezed consumer finances unexpectedly.

Key Insights Table