Taiwan caps short selling, authorizes stabilization fund after rout

Taiwan's Financial Supervisory Commission capped intraday short-sale orders at 3 percent of a stock's average daily trading volume, down from 30 percent, and the finance ministry authorized the National Financial Stabilization Fund to step in after the selloff drove the benchmark into bear market territory.

Why it matters: Taiwan is the second Asian market in two days to intervene directly in the AI rout, after South Korea eased its margin collateral rule, and the shift from circuit breakers to short-sale curbs and state buying shows officials trying to stop forced selling rather than wait out the fall.

Data as of Bloomberg reports of November 6, 2026, read through the estate browser route; the opening sections carrying the Financial Supervisory Commission and Ministry of Finance statements were read, the remainder of both articles sits behind a paywall, and no fund size was stated in the sections read. Developing item.

Taiwan’s Financial Supervisory Commission capped the volume of intraday short-sale orders for borrowed securities at 3 percent of a stock’s average daily trading volume over the preceding 30 days, reduced from 30 percent previously, according to a statement on Friday reported by Bloomberg. The curbs aim to rein in volatility after the deepening selloff in AI-related shares drove the island’s benchmark equity gauge into bear market territory; Taiwan’s market closed down 4.5 percent on Friday, for a weekly fall of 12.2 percent.

Separately, the Ministry of Finance said the National Financial Stabilization Fund’s committee authorized its executive secretary to deploy funds as needed to stabilize the market. No size for the deployment was stated in the reporting read.

Taiwan caps short selling, authorizes stabilization fund after rout

Sources