Taiwanese investors' unique thinking: When the market falls by 10%, nearly 30% choose to "buy the dip".

Fidelity International's latest “2025 Asia-Pacific Investor Survey” reveals that in a market environment filled with Fluctuation, most investors in the Asia-Pacific region choose conservative strategies and tend to increase their cash savings; however, Taiwanese investors show a relatively aggressive mindset, with about 30% indicating that they would choose to increase their investment if a product falls by 10% in a single day, reflecting Taiwanese investors' preference to seek opportunities amid volatility, exhibiting a robust yet proactive investment style.

In 2025, the investment market will experience increased fluctuations, and Taiwanese investors will demonstrate unique coping strategies

Volatility will become the main focus of the investment market in 2025. Although the recent partial trade agreement reached by the United States has stabilized the overall market, factors such as tariffs across various industries, implementation timelines, and the evolution of Sino-U.S. relations still add uncertainty to the market. Additionally, the divergence in central bank policies, the stickiness of inflation in certain economies, and uneven growth across regions all test investors' ability to pursue returns.

Fidelity International conducted a “2025 Asia-Pacific Investor Survey” that interviewed over 6,500 individual investors in Taiwan, Mainland China, Hong Kong, Singapore, Japan, and Australia to explore how investors are coping with market fluctuations. In an environment full of uncertainty, 43% of Asia-Pacific investors increased their cash savings, compared to 39% who increased their investments. Additionally, 19% reduced their investments, primarily due to expectations that the market will continue to fluctuate and that recent fluctuations have harmed investment confidence. The cautious sentiment among investors in Taiwan and Hong Kong is most pronounced, with about a quarter (25%) indicating that they have reduced their investments this year.

Unique Response Strategies of Taiwanese Investors

When asked how to respond to a 10% fall in the investment products held within a day, the survey results show:

· 62% of investors in the Asia-Pacific region indicated that they will maintain their existing investments.

· 21% choose to buy on dip

· 17% choose to exit

Investors in Japan (70%), Hong Kong (69%), and Singapore (64%) are most inclined to maintain their existing investments; Taiwan (29%) and Australia (27%) are more inclined to increase their investments; conversely, 30% in Mainland China chose to exit.

If the investment product held rises by 10% in one day, 57% of investors in the Asia-Pacific region indicate they will continue to hold, 31% will take profits, and 12% will increase their positions. Regional differences are also very pronounced, with investors from Japan (72%), Singapore (60%), and Taiwan (57%) being the most inclined to continue holding; while investors from Mainland China (41%) and Hong Kong (41%) are more likely to take profits; and those from Australia (21%) and Singapore (14%) are more likely to increase their positions.

Financial Goals and Confidence of Taiwanese Investors

Li Shaojie, the head of sales for Fidelity International's Greater China region and chairman of Fidelity Investments, stated that the survey results indicate that most investors are still actively participating in the investment market while adopting a cautious strategy. Overall, investors in the Asia-Pacific region tend to prefer cash savings rather than investments, while Taiwanese investors maintain a steady strategy in fluctuating markets, preferring to increase their positions during falls and maintain their current investments during rises.

The primary financial goals of investors are retirement savings (52%) and economic independence (50%), but only 53% are confident in achieving these goals. The level of confidence varies by region, with investors in Australia (79%) and Mainland China (69%) being the most confident, while those in Taiwan (40%) and Japan (38%) are relatively lower.

Although these goals are of a long-term nature, more than half (55%) of investors in the Asia-Pacific region primarily invest for less than three years, with an expected annual return of 8.1%. Among them, Australia (10.1%) and Taiwan (9.0%) have the highest expectations, while mainland China (6.9%) and Japan (6.8%) are more conservative.

Li Shaojie added that although investors in the Asia-Pacific region have a clear understanding of financial goals, they have not fully utilized the advantages of long-term investment. If the expected annual return rate is 8.1%, holding too much cash may not achieve the target, and continuous investment across market cycles provides a better opportunity to seize asset growth opportunities.