Mon, Nov 17, 2008 - Page 12 News List

Commission to lift ban on short selling


The Financial Supervisory Commission is likely to lift its ban, imposed since Oct. 1, on short-selling on the domestic capital markets today, local media in Taipei speculated yesterday.

To address the market’s weakening turnover, the commission is expected to lift the ban on short-selling of all stocks today ahead of schedule, media reports said.

Should the ban be lifted, investors will no longer be banned from borrowing stocks of companies listed on both the Taiwan Stock Exchange and GRETAI Securities Market for short sales.

Commission chairman Gordon Chen (陳樹) on Friday told reporters that the commission is thinking about lifting the ban ahead of its planned deadline next month, although he refused to give a clear timetable.

The commission had previously said the government would routinely review the short-selling ban in order to maintain normal market operations.

Analysts said that they would welcome the relaxation which would promote a free market and help the stock market to return to previous turnover levels.

However, analysts also warned that the move would not stop the weighted index from reflecting downward pressures from the world markets, especially Wall Street’s plummet on Friday and that they expect major shares to fall today, reports quoting analysts said.

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