Add as a preferred source on GoogleTaiwan Will Limit Short Sales After AI Selloff Pushes Stocks Into Bear Market
A 3% cap on sales of borrowed shares takes effect Nov. 9, as officials prepare to deploy a 500 billion New Taiwan dollar ($15 billion) stabilization fund.
Taiwan’s benchmark stock index fell as much as 9% Friday, Nov. 6, entering a bear market as an AI-share selloff intensified and prompting regulators to curb short sales beginning Monday.
The Financial Supervisory Commission (FSC) announced the restriction after the market closed. Starting Nov. 9, orders to sell borrowed shares on the same day will be capped at 3% of each stock’s average daily trading volume over the previous 30 days.
Taiwan’s finance ministry is prepared to deploy a stock stabilization fund sized at 500 billion New Taiwan dollars, about $15 billion. The index’s weekly loss was its largest since 2001.
The rule sets a per-stock volume ceiling, so its order limit varies with each stock’s average trading activity instead of using one fixed share count for the market. BitMEX co-founder Arthur Hayes reacted to the government response on X, writing, “AI rescue has begun.” The short-sale cap is scheduled to take effect Monday, Nov. 9.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.