Taiwan Securities Settlement Deposits Top NT$4 Trillion in April as Retail Confidence Hits Record High

Securities settlement deposits are funds that investors hold in brokerage settlement accounts and are widely viewed as an indicator of retail market liquidity. The Middle East war roiled global financial markets in March, fueling demand for safe-haven assets and intensifying selling pressure on Taiwan stocks. Changes in settlement-account balances also reflected the movement of funds amid severe market volatility.

Taiwan's central bank said the balance of securities settlement deposits fell by NT$184.5 billion from February, dropping below NT$4 trillion in March. The benchmark stock index tumbled 3,691 points during the month, its largest monthly point decline on record. The figures show that geopolitical risks have significantly hurt investor confidence and affected how retail investors allocate their funds.

Securities settlement deposits are funds investors hold at banks in preparation for stock purchases and are often viewed as a barometer of retail trading momentum. The Central Bank of the Republic of China (Taiwan)’s January financial data showed that money continued to flow into the securities market, reflecting brisk trading in Taiwan stocks as market liquidity and investors’ risk appetite rose in tandem.

Securities settlement deposits increased by NT$290.3 billion in January to NT$3.98 trillion, with both the monthly gain and total balance reaching record highs. Domestic individual investors’ share of trading also rose to 56.2%. M1B growth exceeded M2 growth for the first time in three and a half years that month, signaling ample demand-deposit liquidity and a marked increase in retail investors’ willingness to enter the market and confidence in investing.

Securities settlement deposits are widely viewed as a gauge of retail investor activity, reflecting funds held in settlement accounts that can be deployed into stocks at any time. Central bank data showed that M1B growth exceeded M2 growth for the first time in about three and a half years, creating a “golden cross” that highlighted the accelerating flow of demand deposits into the stock market.

The central bank released its January financial statistics in February 2026. By the end of January, securities settlement deposits had climbed to a record NT$3.9755 trillion, while outstanding margin financing for listed and over-the-counter shares also reached an all-time high. Stronger retail inflows and leveraged trading, together with the M1B-M2 golden cross, helped propel Taiwan stocks to a record high in January.