Taiwan Plans Short-Sale Limits After Benchmark Index Plunges 9%

Taiwan will curb short selling and prepare a market-stabilization fund worth about $15 billion after AI-linked selling drove its benchmark stock index down as much as 9% Friday. The fall pushed the index into a bear market and set it up for its steepest weekly loss since 2001.

Taiwan's financial regulator said short-sale restrictions will take effect Monday, Nov. 9. Orders on shares borrowed that day will be capped at 3% of each stock's average daily trading volume over the previous 30 days. The formula sets a separate ceiling for each stock, based on its own recent turnover.

Taiwan's finance ministry is preparing to mobilize the fund. The intervention comes after AI-related stocks drove the broad market decline.

BitMEX co-founder Arthur Hayes shared the news on X and characterized the policy response as an AI bailout. That puts a sharp AI-linked equity shock in focus for crypto traders following wider market risk sentiment.