Taiwan Weekly Kickstart TAIEX +2

Portfolio Strategy Research 19 September 2026 | 12:52AM HKT

TAIEX +2.2%, led by semis, with all sectors posting gains despite a hawkish Fed hike; QFIIs remained net sellers but bought US$3.4bn on Friday and sharply reduced net short futures positions

Performance: TAIEX/MXTW gained 2.2%, outperforming Services data show hedge funds have continued to reduce Alvin So, CFA | MXAPJ by 2.0pp. Semis led gains (TSMC +2%, others +5%), Taiwan exposure since September, driven primarily by long Goldman Sachs (Asia) L.L.C.

followed by Energy, Telecom, and Capital Goods (all +3%), sales (Exhibit 3); Mutual funds across regional and global Timothy Moe, CFA | while Staples, Autos, Materials, and Retail lagged, rising mandates continued to trim Taiwan exposure in August, Goldman Sachs (Singapore) Pte

0-1%. TWD weakened 0.4% vs. USD to 31.8. (Exhibit 14) with current long-only positioning (vs. benchmark weights) Kinger Lau, CFA | near 10-year lows (Exhibit 5); EM/AEJ funds reduced Goldman Sachs (Asia) L.L.C. Flows: QFIIs were net sellers of US$200mn in cash equities Terry Chan exposure to Tech (ex-TSMC), Consumer, Insurance, and this week despite US$3.4bn of buying on Friday, partly | Commodity-related stocks (Exhibit 8) Goldman Sachs (Asia) L.L.C. driven by FTSE rebalancing inflows, with net purchases of other Tech (+US$1.9bn) offset by heavy selling in TSMC EPS Revisions: Consensus 2027E EPS is up 0.1%, with most (-US$1.0bn), Commodities (-US$400mn), and ETFs, while +ve revisions in Transportation, Commodities, Financials investors also reduced US$4.4bn of net short futures and Hardware, vs. -ve revisions in Consumers (Exhibit 52) positions (Exhibit 17). Local funds were net buyers of Valuations: f12m/24m PE at 18.5x/14.5x (+1.4/+0.6 s.d.) US$1.0bn, with purchases concentrated in non-Tech sectors (Exhibit 18). Retail investors were net sellers of US$2.4bn in TSMC ADR Premium: Rose to 12% (-1pp); Reversal index cash equities, with margin balances declining modestly after GSSRTSMR is at -0.2 (relatively neutral, Exhibit 53). the recent recovery and net long futures positions reduced sharply (Exhibit 24). Short interest ratios rebounded Cross-Strait Risk: GSSRCSRI moderated to 77 (Exhibit 56) (Exhibit 28). ETFs attracted US$1.6bn of inflows after five Macro Data: Policy rate unchanged at 2.0% with benign consecutive weeks of outflows or muted flows, led by inflation outlook dividend ETFs (+US$1.0bn), followed by broad-market passive ETFs (+US$300mn), active ETFs (+US$200mn), and Upcoming Data: Export Orders (Tue), IP (GSe: +28.0% yoy leveraged ETFs (+US$200mn) (Exhibit 33). vs. Cons 25.7%, July +25.6%) and Retail Sales (Wed)

Hedge Fund Flows and Mutual Fund Positioning: GS Prime

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Goldman Sachs Taiwan Weekly Kickstart

Charts of the Week: Flows and Positioning in Focus 3

Taiwan Market/Sector Summary & Scorecard 5

Regional Fund Flows and Positioning 19

TSMC ADR Premium Reversal Index (GSSRTSMR) 22

Equity and Policy Risk Indicators 23

Monthly Sales Tracker (August 2026) 25