(Nov 6): Taiwan rolled out fresh curbs on short selling to rein in market volatility after a deepening selloff in artificial intelligence-related shares drove the island’s benchmark equity gauge into bear-market territory.

The Financial Supervisory Commission (FSC) capped the volume of intraday short-sale orders for borrowed securities at 3% of a stock’s average daily trading volume over the preceding 30 days, according to a statement on Friday. That’s reduced from 30% previously. 

It will also raise the minimum margin requirement for short-selling activities to 130% from 90%. The measures are effective from Nov 9.

Separately, the National Financial Stabilization Fund will activate measures to stabilise the stock market, the Ministry of Finance said earlier on Friday. 

“Continued selling by foreign investors has also pointed to a significant deterioration in market confidence.” Finance Ministry said in its statement. It will deploy funds to support market stability as conditions warrant. 

Taiwan’s authorities have previously turned to trading curbs during bouts of severe market turmoil, most recently in 2025, when concerns over Donald Trump’s tariff policies roiled global equities.

The benchmark Taiex index plunged as much as 9% on Friday, with the deepening losses plunging it into the bear market.

Heavyweight Taiwan Semiconductor Manufacturing Co led the slump, dropping in tandem with a broader rout in global semiconductor shares amid mounting concern over a potential slowdown in US data-center capital spending.

Premier Cho Jung-tai told reporters ahead of a legislative session on Friday morning that he had directed the FSC to monitor equity-market developments closely and respond flexibly.

Uploaded by Felyx Teoh