Taiwan’s financial regulator has announced tighter short-selling controls to stabilize the market amid Donald Trump’s aggressive tariffs.
The new measures, effective April 7, will limit the volume of intraday securities lending orders to 3% of the average daily trading volume over the previous 30 days, the Financial Supervisory Commission said in a statement on Sunday. That is reduced from 30% previously.
It will also raise the minimum margin requirement for short-selling activities from 90% to 130%, the statement says. The changes will be effective from April 7 to April 11.
“The US’s recent announcement on reciprocal tariffs has caused a sharp shock in the global stock markets, and Taiwan’s market had not yet reacted given it was shut for holidays,” said the FSC in a statement. “Global markets are still digesting the information, which will surely bring significant uncertainties to Taiwan’s market.”
The FSC said it will continue to closely monitor the situation and release various stabilization measures when necessary. Trading in Taipei was closed on Thursday and Friday due to an island-wide holiday and will resume on Monday.
Taiwan’s regulators had adopted similar short-selling measures in September 2022, after a bout of volatility in global markets, driven by concerns about the Federal Reserve’s aggressive rate hikes and recession fears.
Taiwan’s National Financial Stabilization Fund is set to hold a regular committee meeting this month, the Ministry of Finance said on Sunday. The fund had supported the stock market back in 2022, when investors lacked confidence amid global economic and political uncertainties.
President Lai Ching-te said Taiwan doesn’t plan to retaliate with tariffs, and will make efforts to improve the reciprocal tariffs through talks with the US, according to a statement from the presidential office on Sunday.
Taiwan-US talks can start from “zero tariffs”, the statement said, adding that industries such as electronics, petrochemical and natural gas will seek to boost investments in the US. This is in addition to Taiwan Semiconductor Manufacturing Co.’s recent announcement. The island’s defense ministry has also proposed an arms procurement list, along with the government’s plan to buy more products, including agricultural, oil and natural gas, from the US.
This article was generated from an automated news agency feed without modifications to text.
