Taipei, April 7 (CNA) The Taiwan Stock Exchange (TWSE), which operates the local main board, pledged Monday to implement timely measures to help the market navigate the turbulence caused by the tariffs imposed by U.S. President Donald Trump on countries worldwide.
In a news conference held before the market opening Monday, TWSE Chairman Sherman Lin (林修銘) said Taiwan cannot isolate itself from the current global volatility.
The TWSE will closely monitor market fluctuations and devise appropriate and timely market support measures, Lin said, adding that it will be well prepared to stabilize market conditions.
On Monday, following the four-day Tomb Sweeping holiday, Taiwan’s stock market plunged more than 2,000 points at the opening bell and soon fell below the 20,000 mark.
Many investors were watching closely to see whether Taiwan’s financial authorities would announce a ban Monday on short selling or adjust the current daily maximum decline of 10 percent, among other measures, to mitigate the effects of Trump’s latest tariffs.
Taiwan’s Financial Supervisory Commission (FSC) on Sunday unveiled temporary measures to curb short selling, effective Monday through Friday, to ease possible sell-off.
The FSC measures include reducing the limit of intraday sell orders for borrowed securities, from 30 percent of the average trading volume of the stock over the previous 30 trading sessions, to 3 percent.
In addition, the FSC said, it would also raise the minimum short-selling margin ratio on the market from 90 percent to 130 percent.
According to market analysts, the short selling measures are largely aimed at preventing foreign institutional investors from dumping local shares, as they have had been doing in recent sessions.
Lin said Sunday that the FSC’s measures will help buffer volatility on the local stock market, and they will be reviewed during the week to give the market effective support.
The local capital market has weathered turbulence amid global financial crises in recent years, he said, adding that it is well prepared to deal with such situations by implementing effective policies.
Taiwan’s government will try its best to support local industries, while seeking negotiations with Washington to lower tariffs, Lin said.
As of 11:57 a.m. Monday, the Taiex, the bench index on the main board, had plunged 2,066.11 points, or 9.70 percent, to 19,232.11. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, had tumbled 10 percent to NT$848.00 (US$25.54).
The markets in Taiwan and elsewhere in Asia were roiled by Trump’s latest tariff policy, announced on April 3, which imposes a 10 percent baseline tax on imports from all countries starting April 5.
Effective April 9, countries with larger trade surpluses with the U.S. will face higher tariffs, including Taiwan (32 percent), China (34 percent), Japan (24 percent), South Korea (26 percent), Vietnam (46 percent), and Thailand (37 percent), according to the new policy.
