Taiwan Stock Trade Defaults Surge 300%, Exceed 2021 Record
Taiwan stock trade defaults hit $62 million in June, the highest monthly tally since 2019, as margin debt surges 160% annually to $19 billion, nearing dot-com bubble peaks.
Securities firms in Taiwan reported $62 million in stock trade defaults for June, the highest monthly figure since data collection began in 2019. A stock trade default occurs when investors buying on margin fail to pay for purchases or when sellers fail to deliver shares for settlement.
Defaults have jumped 300% over the past two months and now run about 20% above the previous record set in 2021. This spike coincides with a 160% surge in margin purchases over the last 12 months, bringing total margin debt to $19 billion — close to the all-time high reached just before the 2000 Dot-Com crash.
For context, margin debt in South Korea rose 94% over the same period, compared with a 50% rise during the final 12 months of the Dot-Com bubble. The data suggests elevated leverage is straining Asian equity markets.
Source: The Kobeissi Letter