Taiwan draws the short -selling rules to calm the market

The Taiwan financial regulator has announced stricter short sales control to stabilize the market amid Donald Trump’s aggressive rates. The new measures, with effect from April 7, will limit the volume of the Intraday Security Loan orders to 3% of the average daily trading volume during the previous 30 days, the Financial Supervisory Commission said in a statement on Sunday. This has been reduced from 30% before. It will also increase the minimum margin requirement for short-selling activities from 90% to 130%, the statement says. The changes will be in effect from 7 to 11 April. “The recent announcement of the US about reciprocal rates has caused a sharp shock in the global stock markets, and Taiwan market has not responded as it has been closed for vacation,” the FSC said in a statement. “World markets are still consuming the information, which will surely bring significant uncertainties into the Taiwan market.” The FSC said it would continue to monitor the situation carefully and release different stabilization measures if needed. Taipei trade was closed on Thursday and Friday due to an island -wide holiday and will resume on Monday. The Taiwan regulators took similar short selling measures in September 2022, after an attack on volatility in global markets, driven by concerns about the aggressive rate of the Federal Reserve and the fear of the recession. The National Financial Stabilization Fund of Taiwan will hold a regular committee meeting this month, the finance ministry said on Sunday. The fund supported the stock market in 2022, when investors did not have confidence in the midst of global economic and political uncertainties. President Lai Ching-Te said Taiwan does not intend to retaliate with rates, and will make efforts to improve the reciprocal rates through discussions with the US, according to a statement from the presidential office on Sunday. Taiwan-American talks can start from “zero rates”, the statement says, adding that industries such as electronics, petrochemical and natural gas will try to promote investments in the US. This is in addition to Taiwan Semiconductor Manufacturing Co. recent announcement. The Ministry of Defense of the Island also proposed a list of arms acquisition, along with the government’s plan to buy more products, including agricultural, oil and natural gas, from the US. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.