The nation's stock and financial regulators yesterday agreed to ease trading restrictions, including the 7 percent daily limit on stock price fluctuations and the ban on shares being sold at prices lower than their latest closing price.
The current rule that prevents locally traded stocks from rising or falling by more than 7 percent per day will be officially phased out in September, and will be replaced by a limit of 15 percent, the Taiwan Stock Exchange Corp said.
The announcement was made yesterday after consensus was reached in a meeting of the exchange's chairman Wu Nai-jen (
When the government will ease the ban on shares sold at prices lower than their latest closing prices will be decided next month after the stock regulator has hammered out supporting measures to make this possible.
The supporting measures include a possible suspension of trading specific stocks for a short period to prevent share-dumping by panicked investors, which may cause financial instability, Wu said.
He yesterday confirmed that the restriction will initially apply to shares listed on the Taiwan 50 Index, which accounts for nearly 50 percent of the TAIEX's turnover, and will "possibly be relaxed in May."
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