Taiwan’s monetary regulator has introduced tighter short-selling controls to stabilize the market amid Donald Trump’s aggressive tariffs.
The brand new measures, efficient April 7, will restrict the quantity of intraday securities lending orders to three% of the typical day by day buying and selling quantity over the earlier 30 days, the Monetary Supervisory Fee mentioned in a press release on Sunday. That’s diminished from 30% beforehand.
It can additionally elevate the minimal margin requirement for short-selling actions from 90% to 130%, the assertion says. The modifications will probably be efficient from April 7 to April 11.
“The US’s latest announcement on reciprocal tariffs has brought about a pointy shock within the world inventory markets, and Taiwan’s market had not but reacted given it was shut for holidays,” mentioned the FSC in a press release. “International markets are nonetheless digesting the knowledge, which is able to absolutely deliver important uncertainties to Taiwan’s market.”
The FSC mentioned it can proceed to carefully monitor the scenario and launch varied stabilization measures when vital. Buying and selling in Taipei was closed on Thursday and Friday on account of an island-wide vacation and can resume on Monday.
Taiwan’s regulators had adopted comparable short-selling measures in September 2022, after a bout of volatility in world markets, pushed by considerations in regards to the Federal Reserve’s aggressive price hikes and recession fears.
Taiwan’s Nationwide Monetary Stabilization Fund is ready to carry a daily committee assembly this month, the Ministry of Finance mentioned on Sunday. The fund had supported the inventory market again in 2022, when traders lacked confidence amid world financial and political uncertainties.
President Lai Ching-te mentioned Taiwan doesn’t plan to retaliate with tariffs, and can make efforts to enhance the reciprocal tariffs by talks with the US, in response to a press release from the presidential workplace on Sunday.
Taiwan-US talks can begin from “zero tariffs”, the assertion mentioned, including that industries reminiscent of electronics, petrochemical and pure fuel will search to spice up investments within the US. That is along with Taiwan Semiconductor Manufacturing Co.’s latest announcement. The island’s protection ministry has additionally proposed an arms procurement record, together with the federal government’s plan to purchase extra merchandise, together with agricultural, oil and pure fuel, from the US.
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