The Financial Supervisory Commission (FSC) yesterday announced temporary response measures to help maintain stock market stability, while safeguarding the interests of Taiwanese investors and listed companies.
In the face of potential market turmoil from US President Donald Trump’s “reciprocal” tariffs announced last week, the commission said it would impose temporary curbs on short selling shares and other measures to reduce potential volatility.
The new measures take effect today and last through Friday, the FSC said in a statement.
Photo: CNA
Short selling is when investors borrow securities, typically from brokerages, and sell them, expecting the price to fall so they can make a profit by buying them back at a lower price later.
Expecting Trump’s tariffs to create shocks in the local stock market following an extended holiday weekend, the commission said it would limit the number of shares that can be sold short, the statement said.
Starting today, the volume of intraday securities lending to short sell a stock is to be lowered to 3 percent of the stock’s average daily trading volume over the previous 30 sessions, down from 30 percent, the commission said.
In addition, the amount of money an investor must deposit to borrow securities is to be raised to 130 percent of a stock’s value from 90 percent, it said, underlying the commission’s intention to effectively increase the cost of short selling.
The FSC would also allow investors to use municipal means as collateral, as long as they have market liquidity and can be objectively and reasonably assessed, allowing investors to make up the margin shortfall in margin trading or short selling, it added.
The commission said it would continue to monitor changes in the international financial situation and domestic capital market conditions, and adjust measures in a timely manner.
NETWORK-MAPPING PROJECT: The database contains 170 detailed files of Taiwanese politicians and about 23 million records of household registration data in Taiwan China has developed a network-mapping project targeting political figures and parties in Taiwan to monitor public opinion during elections and to craft tailored influence campaigns aimed at dividing Taiwanese society, according to documents leaked by Chinese technology firm GoLaxy (中科天璣). The documents, collected by Taipei-based Doublethink Lab, showed a database was specifically created to gather detailed information on Taiwanese political figures, including their political affiliations, job histories, birthplaces, residences, education, religion and a brief biography about them. Several notable Taiwanese politicians are in the database, including President William Lai (賴清德), former president Tsai Ing-wen (蔡英文), Minister of Foreign Affairs Lin Chia-lung (林佳龍),
RECOGNITION: Former Fijian prime minister Mahendra Chaudhry said that Taiwan’s New Southbound Policy serves as a stabilizing force in the Indo-Pacific region Taiwan can lead the unification of the Chinese people, Nobel Peace Prize laureate and former Polish president Lech Walesa said in Taipei yesterday, adding that as the world order is changing, peaceful discussion would find good solutions, and that the use of force and coercion would always fail. Walesa made the remarks during his keynote address at a luncheon of the Yushan Forum in Taipei, titled “Indo-Pacific Partnership Prospects: Taiwan’s Values, Technology and Resilience,” organized by the Taiwan-Asia Exchange Foundation with the Ministry of Foreign Affairs. Walesa said that he had been at the forefront of a big peaceful revolution and “if
North Korea tested nuclear-capable rocket launchers, state media reported yesterday, a day after Seoul detected the launch of about 10 ballistic missiles. The test comes after South Korean and US forces launched their springtime military drills, due to run until Thursday. North Korean leader Kim Jong-un on Saturday oversaw the testing of the multiple rocket launcher system (MRLS), the Korean Central News Agency (KCNA) said. The test involved 12 600mm-caliber ultra-precision multiple rocket launchers and two artillery companies, it said. Kim said the drill gave Pyongyang’s enemies, within the 420km striking range, a sense of “uneasiness” and “a deep understanding
North Korea yesterday fired about 10 ballistic missiles to the sea toward Japan, the South Korean Joint Chiefs of Staff (JCS) said, days after Pyongyang warned of “terrible consequences” over ongoing South Korea-US military drills. Pyongyang recently dashed hopes of a diplomatic thaw with Seoul, Washington’s security ally, describing its latest peace efforts as a “clumsy, deceptive farce.” Seoul’s military detected “around 10 ballistic missiles launched from the Sunan area in North Korea toward the East Sea [Sea of Japan] at around 1:20pm,” JCS said in a statement, referring to South Korea’s name for the body of water. The missiles
RSS