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3w ago

Taiwan Imposes Temporary Short-Selling Curbs Following U.S. Tariffs

The measures aim to stabilize Taiwan's stock market ahead of its reopening, as the central bank prepares to counter currency depreciation pressures.

A shadow is cast on a board showing stock market prices inside a brokerage in New Taipei city, Taiwan, August 24, 2015. REUTERS/Pichi Chuang/File Photo
A man looks at a computer screen displaying average stock prices at the Bank of Taiwan Securities in Taipei, Taiwan, April 7, 2025. REUTERS/Ann Wang
A man walks past the Taiwan Stock Exchange logo outside their office in Taipei, Taiwan August 6, 2024. REUTERS/Carlos Garcia Rawlins/File Photo

Overview

  • Taiwan's Financial Supervisory Commission announced short-selling restrictions effective April 7-11 to address market instability caused by new U.S. tariffs.
  • The curbs include raising the minimum short-selling margin ratio to 130% from 90% and limiting the number of shares that can be sold short.
  • The U.S. imposed a 32% tariff on Taiwanese imports, citing trade imbalances, triggering global market losses, including a $5 trillion drop in the S&P 500 over two days.
  • Taiwan's central bank expressed confidence in maintaining the stability of the Taiwan dollar, despite anticipated depreciation pressures and potential foreign capital outflows.
  • Taiwan's stock market, reopening after a holiday, is expected to face significant declines as authorities monitor international financial developments for further action.