Taiwan extends short-selling curbs after US tariffs bring market turmoil
FILE PHOTO: A man walks past the Taiwan Stock Exchange logo outside their office in Taipei, Taiwan August 6, 2024. REUTERS/Carlos Garcia Rawlins/File Photo
TAIPEI : Taiwan's top financial regulator said on Saturday it would extend temporary curbs on short-selling for another week to ensure market stability after U.S. tariffs unleashed turmoil, adding that the restrictions had been helpful.
The stock market in Taiwan seesawed this week, plummeting on the tariff news before rebounding strongly after U.S. 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 U.S. 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.
This week Taiwan also activated its $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.
