A 7.4 percent slump in Taiwan’s benchmark Taiex index from a peak in March has dragged its price-to-book valuations to the lowest level relative to the MSCI All Country World Index since April 2007. After pouring more than $5 billion into the island’s equities in March amid optimism about economic prospects under President-elect Tsai Ing-wen, global investors reversed gears by dumping a net $2.9 billion this month. The gap may not be bad news; the last time valuations were this low, the Taiex went on to rally 23 percent in six months.
Photographer: Maurice Tsai/Bloomberg
Taiwan Stock Valuations Cheapest Versus World Since 2007: Chart
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