Economy
Driven by AI hype, Taiwanese turn to borrowing to buy stocks
As Taiwan’s stock market soared this year, being one of the best performers in the world, real estate worker Lucas Chen moved to borrow NT$5 million ($157,330) to buy tech shares, and within six months, he says he quadrupled his money.
Chen is one of a growing number of people using debt to buy into the island’s stock market, which soared 59% in the first half of the year thanks to booming demand for artificial intelligence hardware made by chip giant TSMC and others.
But while the prospect of vast returns has lured and repaid many, others have suffered hefty losses or been tricked by scammers, prompting authorities to issue warnings about the risks.
“The first half of the year was really crazy. It was absolutely wild,” said Chen, who makes a base salary of up to NT$50,000 ($1,500) from his job.
The 34-year-old began trading in the stock market 10 years ago, saving up his bonuses to buy chip titan TSMC, which accounted for about 45% of the Taiwan Stock Exchange at the end of 2025.
At the start of this year, Chen saw “a good opportunity” to increase his investments and took out three bank loans worth NT$5 million, using his new Tesla as collateral for two of them.
The bet paid off.
Chen’s tech investments, half of them in TSMC, surged nearly 70%, pumping up his holdings by about NT$20 million by late June.
“The older generation would say borrowing money isn’t a good thing,” Chen told Agence France-Presse (AFP).
“But if you do the maths carefully,” the risks are “controllable.”
Financial influencer Yeh Yu-shuo has enjoyed the fruits of the market, but he has also seen the downside of the stock-buying frenzy in his Facebook group, where hundreds of thousands of members can trade investment advice.
“I’ve reviewed posts saying they want to jump off a building,” Yeh said.
One anonymous poster said in early August he had invested NT$10 million, including a NT$6 million mortgage, in recent months and had lost nearly half of it.
“Since last month, I’ve been waking up in the middle of the night in a panic,” the poster said.
“I’ve already sought treatment from a psychiatrist, and I even went to Zinan Temple, but none of it has helped at all. Right now, all I want is to get my money back as quickly as possible.”
‘Buying stocks like crazy’
Global stock markets have surged this year to all-time highs as tech firms ramped up spending on AI data centers, hardware and software.
However, the rally hit a wall in July, hammering the tech sector on concerns over when that cash will see a return, and warnings that company valuations had gone too far.
Anticipation for a U.S. interest rate hike has also weighed on sentiment and could curb demand for stocks, particularly tech firms, which rely on borrowing to fuel their investments.
While some people in Taiwan have used their savings or borrowed from family to invest, many have relied on banks or brokers to fund their stock purchases.
Norman Yin, a professor of money and banking at National Chengchi University, said young people have been “buying stocks like crazy.”
Taiwanese banks are sitting on “unprecedented” levels of deposits, partly due to stagnant property prices, and are very willing to lend.
“If I borrow money from a bank to buy stocks, I could make more in one day than I earn from my salary in a month,” Yin said, noting fresh graduates often made around NT$40,000 per month.
“It’s faster and easier than sitting in an office and working hard.”
Meanwhile, margin trading – in which investors use funds borrowed from a broker to buy securities – rose nearly 20% in the first half from the previous six months, Taiwan Stock Exchange data show.
Taiwan’s Financial Supervisory Commission told AFP that overall “credit risk remains under control.”
Still, the stock exchange has started publishing videos on social media warning young investors about the risks of defaulting on their loans.
‘Windfall for our generation’
Social media platforms in Taiwan are rife with posts about people making huge sums and quitting their jobs to trade full time.
Marketing specialist Jerry Lee, 30, said he has watched with some envy as friends post about their gains in their group chat.
“When you see someone make two or three months’ salary in two days, oof, that’s really painful,” said Lee, who describes himself as a “conservative” investor.
Social media gives the impression that “everyone is making money” he said.
“When it’s dropping, they won’t tell you about it.”
Taiwan’s stock index fell about 16% from its record high on June 22 to July 30, while South Korea’s market – which has been the poster child of the global tech-led surge this year – plunged about 40%.
Still, Yeh said he had confidence in Taiwan’s stock market “as long as TSMC remains stable.”
The Taiex has recovered almost all the losses sustained in the summer sell-off.
Chen said the opportunity to make money would keep him investing.
“This is a windfall for our generation,” he said.
Russia sees no grounds for the Black Sea grain deal to resume, Deputy Foreign Minister Alexander Grushko said Wednesday, as Russia and Ukraine continue to attack each other’s export facilities.
Türkiye and the United Nations helped mediate the so-called Black Sea Grain Initiative, which was agreed in July 2022 to allow the safe export of nearly 33 million metric tons of Ukrainian grain via the Black Sea, despite the war.
Russia withdrew from the agreement in 2023, complaining that its own food and fertiliser exports faced serious obstacles.
Türkiye has prepared a new plan for the safe passage of grain via the Black Sea and was contacting both countries in this regard.
“There was a deal … But a substantial part of it was not implemented. Do you see any change in the West’s position? I don’t,” Grushko told reporters on the sidelines of a forum in the Russian Far East port city of Vladivostok.
Both Russia and Ukraine are major grain exporters and their mutual attacks, in the wake of the Russian invasion of Ukraine in February 2022, have contributed to the increase in global wheat prices.
Russia continues to attack Ukraine’s Black Sea export facilities and those along the Danube River, damaging infrastructure and injuring three in Odesa, Ukraine’s largest seaport, in a fresh strike Wednesday, a city official said.
Tensions with Germany
The German government said Tuesday that it had concluded that Russia was responsible for an attempted drone attack at Leipzig/Halle Airport last month and ordered a series of measures in response, including a consulate closure in Bonn.
Russian President Vladimir Putin the same day accused Germany of planting the evidence in order to blame Moscow for the incident.
Grushko said on Wednesday Russia will retaliate to the Bonn consulate closure “very soon.”
Türkiye’s manufacturing activity rose to a three-month high in August, a survey showed Tuesday, signaling a modest improvement in business conditions even as the sector remained in contraction.
The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 48.1 in August from 47.7 in July. A reading below 50 indicates contraction, while one above 50 signals growth.
Surveyed businesses said the war in the Middle East continued to weigh on the manufacturing sector midway through the third quarter, mainly through subdued demand and heightened market uncertainty.
Both total new orders and new export business declined in August, although the contractions were less pronounced than in July.
Manufacturers also cut production for a third consecutive month. The latest decline was modest and broadly in line with the pace recorded in July.
With workloads remaining subdued, manufacturers reduced employment and purchasing activity at solid rates, with both declines accelerating from the previous month.
Firms also drew down existing inventories to meet order requirements where possible, leading to further reductions in stocks of both purchases and finished goods.
Meanwhile, input cost inflation accelerated to a three-month high amid reports of higher fuel and oil costs as well as rising raw material prices. Manufacturers responded by raising their selling prices.
Output price inflation also accelerated, although it remained below its average for the first half of the year.
Supplier delivery times lengthened as disruptions linked to the Middle East conflict affected supply chains, the survey showed.
Andrew Harker, economics director at S&P Global Market Intelligence, said the war in the Middle East continues to cast a shadow over the manufacturing sector, limiting demand and adding a layer of uncertainty to business decisions.
“Despite this, firms have been able to limit the impact, with new orders easing to the smallest degree in three months during August,” Harker said.
“This provides some hope that the sector can move up a gear in the months ahead, but much still depends on events in the Middle East and how they play out,” he added.
Türkiye will seek to deliver a historic action plan with concrete solutions to the climate crisis at the COP31 it will host in November, Environment, Urbanisation and Climate Change Minister Murat Kurum said Tuesday.
“Do not expect a piece of paper from Antalya that will gather dust on shelves,” Kurum, who is also president of this year’s U.N. climate summit, told an event in the capital Ankara. “We will produce a strong action plan that will shake the world to its foundations and rewrite history.”
The annual COP conference is the main global forum for driving action on climate change. The long-established consensus among the world’s scientists is that climate change is real, mostly caused by humans, and getting worse. Its main cause is greenhouse gas emissions from burning fossil fuels like coal, oil and gas, which trap heat in the atmosphere.
Kurum said this year’s summit in the southern Mediterranean province will be “the COP of implementation” focused on turning climate commitments into tangible action rather than setting new targets.
“The world does not need to constantly set new targets at the negotiating table. What it needs is an unwavering will to turn those targets into action in the field, in industry and in cities,” the minister noted.
“Let Antalya not be a place where problems are discussed over and over again, but rather a place where solutions are found.”
Kurum said Türkiye would use its diplomatic capacity and experience to overcome barriers to implementation and ensure that commitments made under the Paris Agreement translate into concrete results.
6 global initiatives by 2035
Under a format agreed last year, Türkiye will host the summit and hold its presidency, while Australia will lead the negotiation process.
Kurum said the two countries have set six major global initiatives to be implemented by 2035.
The first focuses on electrification, with a goal of increasing its global share to 35%.
The second aims to cut the growth in global waste by half, while the third targets a 25% reduction in energy consumption in buildings by 2035.
The fourth initiative seeks to increase the use of circular materials in industry to 15%, reducing pressure on natural resources.
The fifth focuses on climate literacy and education, while the sixth aims to establish a “Climate Implementation Bridge” connecting countries in need with financing and solutions.
Kurum said governments alone could not finance the scale of investment required to tackle climate change and called on banks, investors and major companies to play a greater role in the green transition.
“This historic crisis cannot be overcome with the limited budgets of governments alone,” he said, urging the private sector to join the effort at the center of the green transformation.
Stronger role for vulnerable countries
Kurum said Türkiye would seek to ensure that vulnerable countries, particularly those in Africa and small island states, have a stronger voice in the COP31 process.
He said climate impacts did not respect national borders and that climate justice would remain Türkiye’s guiding principle during the negotiations.
Türkiye is working with Australia around three pillars, dialogue, consensus and action, and plans to engage with countries and stakeholders ahead of the Antalya summit, he said.
Kurum said Türkiye would also use the process to bring together young people, cities, businesses, farmers and scientists to develop practical solutions.
He said the world leaders summit in Antalya would provide an opportunity to give new direction to international climate efforts.
Kurum said Türkiye would continue preparations through a series of international meetings and initiatives, including events in Fiji, Baku, New York and London.
He said the Pre-COP meeting in Fiji would be particularly important for giving vulnerable Pacific island states a platform to make their concerns heard.
“We will start with dialogue, grow through consensus and bring it to life through action,” Kurum said.
A vice president at Bank of America (BofA) was among the victims killed Monday in a stabbing at Times Square.
Erin Piacenti, 32, was a vice president in BofA’s business selection and conflicts unit, according to her LinkedIn profile.
“We are shocked and deeply saddened by the tragic loss of our colleague. She was a valued teammate who will be greatly missed,” the U.S. banking giant said Tuesday in a statement to Reuters.
“Our hearts go out to her family and all of her loved ones.”
New York City Mayor Zohran Mamdani said Monday in a press briefing that a woman carrying multiple knives stabbed two people in Times Square before police used a Taser and fired their weapons.
BofA’s Manhattan office is located a stone’s throw from Times Square at One Bryant Park. The bank also has other locations across New York City, the heartbeat of the American financial system.
Piacenti sustained stab wounds in the incident and was later pronounced dead, the NYPD said.
NYPD Commissioner Jessica Tisch added that the attacks appeared random and unprovoked.
“The investigation remains ongoing by the NYPD Force Investigation Division,” the NYPD said in a statement, adding that the suspect, Pamela Cisneros, a 49-year-old woman, was killed Monday as officers responded.
The incident comes after the fatal shooting of a senior Blackstone executive last summer when a gunman, carrying an assault rifle, walked into the lobby of a midtown Manhattan office building and opened fire.
Vestel Elektronik and Anadolu Group Holding said Tuesday they are in talks about their shares in Türkiye’s Togg, after a report claimed the companies were set to sell their stakes in the homegrown electric vehicle maker.
A Reuters report Monday suggested the companies were in discussions and that Türkiye’s sovereign wealth fund TWF was set to become a Togg shareholder.
“Consistent with our investment policies and strategic objectives, discussions concerning the aforementioned shares are currently underway,” Anadolu Group Holding said in a statement. “However, at this stage, no binding agreement has been reached to finalize a transaction.”
Vestel’s statement said no resolution had been adopted by its board regarding “the completion or finalization of the transaction.”
After the news emerged, shares in another Togg shareholder Turkcell closed down 8.16%, while Anadolu Group Holding climbed 4.37% and Vestel Elektronik rose 3.05%. Turkcell was up 1.6% Tuesday, while the other two shares were broadly flat.
Togg was founded eight years ago after President Recep Tayyip Erdoğan called for the production of a fully locally funded passenger car.
Vestel Elektronik, Anadolu Group Holding, Turkcell and BMC Otomotiv each hold 23% stakes in the company. The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) owns the remaining 8%.
The report Monday, citing sources, said Turkcell and TWF would buy the stakes held by Vestel and Anadolu Group but did not provide details on the value of the 46% stake. The sources said a final agreement was expected soon.
Turkcell said in a statement that discussions regarding the shares were ongoing. TWF declined to comment, while Togg did not respond to requests for comment.
The company is currently manufacturing the T10X SUV, introduced two and a half years ago, and the T10F fastback, launched last year, at its factory in the northwestern Bursa province.
Togg is also closing in on releasing the lower-cost B-SUV T6X model. Chair of the Board Fuat Tosyalı said Monday initial deliveries are planned to begin by the end of June 2027.
Togg sold 39,020 vehicles domestically last year and its sales in the first seven months of this year rose 30% year-over-year to 25,848 units, data from the Automotive Distributors and Mobility Association (ODMD) shows.
Authorities in India have raided an illicit operation in Mumbai that falsified expiry dates and nutritional labels on authentic food products manufactured by PepsiCo, Nestle, Coca-Cola and Unilever so they could be exported to other countries.
That’s according to a report by Reuters, which said it got access to the warehouse last week as food officers conducted a six-day investigation and seized goods worth nearly $80,000.
A photographer saw chemicals used to remove manufacturers’ original expiry dates and ingredient labels, machines to print and apply replacements and scores of label packs for products including Lay’s potato chips and Maggi noodles.
India’s Maharashtra state, where Mumbai is the capital, has intensified a food safety drive under the new head of the state’s Food and Drug Administration, Tukaram Mundhe, whose surprise inspections at elite clubs and restaurants have made him an online and TV celebrity.
‘Shocked by scale’
“I am absolutely shocked by the scale. It is like an organized activity. It’s been done systematically,” Mundhe told Reuters Tuesday about the investigation into the illicit warehouse operation.
The warehouse, located in the industrial area of Navi Mumbai around 25 km (16 miles) from Mumbai’s international airport, was run by privately owned Sadhana Enterprises. Its owner said they carried out the activities on behalf of 19 little-known exporters, according to a media release from the state and a police case document.
Officials said most products were expired or near-expired. By changing dates, “harmful food products are being exported for sale, thereby defrauding customers,” the case document said.
It was not clear which countries the products were destined for, but all the stock was for export, Mundhe said. At least one reprinted label on a PepsiCo packet was in English and French, Reuters found.
PepsiCo, Nestle, Unilever India unit Hindustan Unilever, and Coca-Cola did not respond to requests for comment. Calls to warehouse co-owners Jayprakash Sanchatiram Singh and Jaya Navrang Bahadur Singh were not answered. It was not clear whether any arrests had been made.
Chemicals and printing machines
The gated warehouse had four large rooms beneath a tin roof.
Officials found nearly 5,000 cartons of consumer products, including PepsiCo’s Lay’s and Kurkure chips, Nestle’s Maggi Masala Noodles, Unilever’s Knorr Mushroom Soup and Hellmann’s Mayonnaise, and Coca-Cola’s Thums Up and Limca cans. Many of the Kurkure and Maggi packets, as well as the Thums Up cans, had their dates removed.
Inside the dirty warehouse, Reuters photographer Francis Mascarenhas saw a can of chemical solvent that officials said was used to erase dates from the packets.
They said an operator would enter the fake expiry and manufacturing dates using a stylus on a computer screen. Workers would then use a machine fitted to a metal table, decorated with a tiny “I love my India” sticker, to allegedly print the new label on packaging and cans.
“The original date of manufacture and expiry date on the packaging of the food articles had been scratched out, erased… (and) new information printed over them,” the police document said.
The police case did not accuse any global companies of wrongdoing, but Mundhe called for supply chain accountability.
“Everybody needs to take this seriously. Companies have to abide by compliance and ensure that branding, packaging and sale are done as per regulations,” he said.
Cartons of Maggi, fake ingredient labels
Enforcement of food safety laws is weak in India.
Food safety checks have long focused on adulteration, particularly of dairy products, when cases rise during festive seasons as demand for traditional Indian sweets surges.
Mundhe told Reuters his team found some packs were being reprinted with a future manufacturing date of Oct. 2, 2026 inside the Mumbai warehouse.
Given that foreign countries may have different labeling requirements and health guidelines, Reuters found dozens of Maggi cartons in the warehouse, with one sample showing a fake nutrition label pasted on top of a pack, making it export-ready by describing it as a “Product of India.”
One PepsiCo Kurkure pack had a nutrition label in English and French in a bilingual format.
The fake label reduced the quantity of cereal products in its ingredients by 10% and tweaked the number of calories and serving size in an apparent move to align the labels with foreign regulations.
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