Taiwan announces temporary short-selling curbs after US tariffs

Liang-sa Loh - Reuters - 06/04
Taiwan's top financial regulator said on Sunday it will impose temporary curbs on short-selling of shares to help deal with potential market turmoil from U.S. President Donald Trump's new import tariffs, and will take other steps as needed.
  • Taiwan places temporary curbs on short-selling stocks
  • Regulator pledges 'timely' adjustments to measures
  • Taiwan markets closed on Thursday, Friday as global stocks slid
TAIPEI, April 6 (Reuters) - Taiwan's top financial regulator said on Sunday it will impose temporary curbs on short-selling of shares to help deal with potential market turmoil from U.S. President Donald Trump's new import tariffs, and will take other steps as needed.
Taiwan's Financial Supervisory Commission said in a statement it would limit the number of shares that can be sold short and raise the minimum short-selling margin ratio to 130% from 90%, starting from Monday and lasting until Friday.

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Short sellers borrow shares they expect to fall and hoping to repay the loan for less later to pocket the difference.
Taiwan's stock market (.TWII), opens new tab was closed last Thursday and Friday for a holiday and reopens on Monday, meaning investors have yet to have a chance to respond to the tariffs. Global stock markets have plunged since they were unveiled, with the S&P 500 losing $5 trillio...
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