Taiwan Authorizes Up to NT$500 Billion in Its 10th Market Intervention

Taiwan's National Stabilization Fund approved its 10th intervention, authorizing up to NT$500 billion to support stocks after Taiwan's market fell 12.19% over the trading week ended Friday.

The authorization sets a ceiling, not a commitment to deploy the full amount. The fund's committee empowered its executive secretary to act as conditions warrant but did not set a start date or specify how much money would be used. A prior intervention in April 2025 authorized the same ceiling and used about NT$12.25 billion.

Taiwan's Financial Supervisory Commission (FSC) will tighten short-selling rules. The intraday cap on securities-lending short-sale orders will fall to 3% from 30% of average daily trading volume over the prior 30 business days. The minimum margin requirement for short sales will rise to 130% from 90%. Investors may also use a wider range of collateral, subject to approval from a securities finance company or brokerage.

The fund cited declines in U.S. and Asian markets after the U.S. midterm elections and heavy foreign selling as pressures on investor confidence. It also pointed to Taiwan's technology-heavy market and its close links to the Philadelphia Semiconductor Index. The new short-selling rules take effect Nov. 9.