TAIPEI (Taiwan News) — Taiwan’s banking sector shifted its investment mix in July, boosting bond holdings while scaling back on equities, as US tariff policies unsettled global markets and influenced asset allocation strategies, CNA reported Sunday.
Data released by the Financial Supervisory Commission shows that banks increased their bond portfolios by NT$88.4 billion (US$2.9 billion) in July, ending a three-month streak of reductions. At the same time, stock investments were cut by NT$19.7 billion.
Despite the rebound, banks still recorded a net reduction of NT$172.6 billion in bonds over the first seven months of the year. During the same period, they added NT$75 billion to equities.
Overall, as of the end of July, combined bond holdings across banks, insurers, and securities firms reached NT$30.05 trillion. Stock investments totaled NT$3.59 trillion.
The data highlights a divergence in strategies. Banks trimmed equities, life insurers increased cash and bonds, and securities firms expanded positions across both bonds and stocks.
For banks, bond investments stood at NT$9.35 trillion, down NT$71.3 billion year-on-year. Stock investment costs amounted to NT$512.8 billion, a decrease of NT$11.7 billion from the previous year.
The insurance industry held NT$20.4 trillion in bonds at the end of July. Life insurers accounted for NT$20.33 trillion, up NT$124.7 billion from June, while non-life insurers held NT$104.3 billion.
In equities, life insurers’ stock holdings rose by NT$62.5 billion to NT$2.47 trillion, while non-life insurers’ positions increased NT$2.6 billion to NT$51.1 billion.
Life insurers also strengthened their cash holdings, which rose NT$50.6 billion from June to reach NT$1.17 trillion. The increase underscores a cautious, liquidity-focused stance in the short term.
Securities firms expanded investments across both bonds and equities in July. Domestic bond holdings reached NT$155.5 billion, while foreign bonds totaled NT$269.8 billion. Equity positions rose to NT$129.84 billion in domestic stocks and NT$4.16 billion in foreign stocks.
