Taiwan has extended its short-selling restrictions for another week to stabilize its stock market after recent US tariff turmoil. The move follows sharp market swings triggered by the tariff announcement and a brief rebound after President Trump paused the policy.
The Financial Supervisory Commission said the short-selling curbs helped stop panic selling and brought some stability back to the market. However, global uncertainties, especially around US trade actions, continue to pose risks.
Taiwan also activated a $15 billion stock stabilisation fund this week to support its market. Despite these efforts, the island’s main stock index has already fallen 15% this year.
Short-selling allows investors to profit from falling stocks, but it can also increase volatility. Taiwan’s regulator stressed the need for continued caution due to ongoing global market pressures.