Taiwanese investors are borrowing heavily to chase a stock market that has surged over 100% in the past year, pushing margin debt up 160% and nearing a record set just before the 2000 crash. The frenzy has led brokerages to hit internal lending limits, forcing them to demand more collateral and raise rates, while some investors turn to bank loans instead. The borrowing binge even disrupted a central bank debt auction on June 3, the first time not enough buyers showed up. Regulators say leverage remains in check, but investor defaults from stock trades more than doubled in June to over NT$2 billion, the highest monthly total since 2019. Despite warnings from contrarians of an AI bubble, many young Taiwanese like 26-year-old Andy Cheng, who borrowed to buy $60,000 in tech stocks, remain confident the rally has substance.
Goldman Sachs Group Inc
NVIDIA Corporation