[TAIPEI] Taiwan’s top financial regulator said on Saturday (Apr 12) that it would extend temporary curbs on short-selling for another week to ensure market stability after US tariffs unleashed turmoil, adding that the restrictions had been helpful.
The stock market in Taiwan seesawed last week, plummeting on the tariff news before rebounding strongly after US President Donald Trump put a pause on the tariffs.
In a statement, Taiwan’s Financial Supervisory Commission said the market stabilisation measures on short-selling of shares had “indeed had the expected effect of effectively curbing speculative selling”.
While investor confidence has been gradually restored, the US tariff policy and responses by other countries are still highly uncertain in the short term, it added.
Global stock market fluctuations are likely to keep affecting Taiwan’s stock market, the regulator said.
Last week, Taiwan also activated its US$15-billion stock stabilisation fund to prop up the market. The island’s benchmark stock index has dropped 15 per cent so far this year.
Short sellers borrow shares they expect to fall, aiming to repay the loan for less later to pocket the difference. REUTERS
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