Foreign capital borrowing and short selling finally saw a decrease yesterday after more than two weeks.

Foreign borrowing and short selling finally decreased yesterday. (File photo)

[Reporter Chen Yongji/Taipei Report] The Taiwan stock market continued to fall from late October to early November. During this period, foreign investors made large profits through short selling of bonds. However, since the Financial Supervisory Commission announced last Friday's rescue measures, it significantly reduced the limit of intraday borrowing and selling orders from 30% of the average volume of the previous 30 days to 3%, resulting in a significant decrease in the number of short selling of bonds this week. Yesterday, for the first time in more than two weeks, the overall number of short selling of bonds decreased.

According to the "Taiwan Stocks Dashboard", the last decrease in bond borrowing and short selling was on October 28. After that, foreign bond borrowing and short selling became prevalent, and Taiwan stocks also fell all the way until the Financial Supervisory Commission introduced rescue measures last Friday. Although short borrowing and short selling still increased by 140,000 bonds on Monday, it gradually declined thereafter. On Thursday, there was an increase of 14,000 bonds, and yesterday there was a further decrease of 27,000 bonds.

According to statistics, the peak number of short-selling foreign bonds in this wave fell on Thursday at 18.433 million, while it was only 16.68 million on October 28. It increased by 1.75 million in just two weeks, an increase of more than 10%. It is no wonder that the policy was introduced to restrict short-selling of foreign bonds, and now it seems to be quite effective. The weighted index rose by nearly 4,000 points this week, an increase of more than 10%.