Does the Taiwanese end-of-year bonus affect the stock market?
First we have to make some assumptions:
The average Taiwanese worker makes about NT$30,000 a month and gets two months bonus. Let’s say 1 in 30 people invests half their bonus in stocks. This means an average of NT$500 per person. Taiwan’s working population is roughly 10M so the total money invested is NT$5,000,000,000 or NT$5bn.
The stock market turns over about 120bn per day.
Even if everyone invested their entire bonus that would only be 300bn so it unlikely there is a “bonus effect” in the stock market.