Taiwan AI Stock Rally Sparks Margin Lending Craze, Regulator Warns

The regulator's warning signals that the AI-driven rally is now being amplified by retail leverage, a pattern that historically precedes sharper corrections. This matters because Taiwan's tech sector is a key node in the global AI supply chain, so excessive margin debt there could spill over into broader market sentiment. The immediate watch point is whether authorities move from warnings to actual cooling measures, such as raising margin requirements, which would directly test the sustainability of the current risk appetite.