Taiwan stocks implemented short-selling order 5 times! Whether the additional measures will be announced in the afternoon will attract attention

During an interview at "Taiwan Week" in Kaohsiung today, Chairman of the Financial Supervisory Commission Peng Jinlong said that he had received instructions from the Executive Yuan, requesting the Ministry of Finance and Economics to respond to the current situation of the stock market, and is expected to hold a special meeting in the afternoon and announce "measures to stabilize the stock market." Taiwan's stock market has implemented "air restrictions" five times in the history. In addition to expectations that the Financial Supervisory Committee will adopt "air restrictions," this time it will be based on the content of the tariff and trade war air restrictions in 2025, or will new items be added? It has also attracted much attention from the market.

The Financial Supervisory Commission said on Thursday afternoon that the recent impact of international stock markets and the uncertainty of the international geopolitical situation have led to greater fluctuations in Taiwan's stock market. The Financial Supervisory Commission continues to pay attention to recent stock market fluctuations and has asked stock exchanges and over-the-counter trading centers to pay close attention to changes in international financial markets. However, Asian stock markets plummeted due to the earthquake today, especially the stock markets of Taiwan, Japan and South Korea suffered the largest declines.

In an interview before going to the Legislative Yuan today to prepare for an inquiry, Chief Executive Officer Cheuk Wing-tai said that he has instructed the Financial Supervisory Commission to "flexibly" stabilize the stock market at any time. The Financial Supervisory Commission is also expected to announce the first wave of market rescue measures this afternoon. Since it is still difficult to judge whether the international stock market crash has just begun or the storm has ended, whether the Financial Supervisory Commission will implement the short-term order as expected by the outside world.

In addition to the expectation that the Financial Supervisory Committee will adopt "air restrictions", will this time be based on the content of the tariff and trade war air restrictions in 2025, or will new items be added? Also attracted market attention.

Looking back on the past, when Taiwan's stock market suffered a sharp decline, different "stock market stabilization measures" or "rescue measures" were implemented according to different situations. Among them, "short restriction orders" were implemented five times in history, including the 2008 financial tsunami, the 2015 Chinese stock market crash, the impact of the COVID-19 epidemic in 2020, the U.S. interest rate hikes in 2022, inflation and the Russia-Ukraine war and other major international political and economic turmoil. The last time was in 2025. In 2016, the United States implemented reciprocal tariffs, and the measures implemented at that time included: lowering the limit on borrowing securities from 30% to 3%, and adjusting the margin for securities lending from 90% to 130%.

Other measures taken by the Financial Supervisory Commission to rescue the market include: no short selling below the flat market, a complete ban on short selling, narrowing the decline limit from 7% to 3.5%, adjusting the securities lending margin ratio from 90% to 120%, and reducing the daily limit on the number of intraday borrowing and selling orders.