Taiwan’s Financial Supervisory Commission (FSC) Chairman Peng Jin-lung ruled out imposing short-selling restrictions or a ban despite a ~3,700-point market drop, noting that trading remains orderly with no artificial distortion.
Background:
- Taiwan’s stock market has plunged roughly 3,700 points in ten trading sessions after nearing the 50,000 mark in early October;
- the market rebounded sharply on October 19 and pared its losses to around 300 points, the violent swings became the focus of questioning at the Legislative Yuan Finance Committee;
- judging by the regulatory stance, the FSC has chosen “not to act” rather than “act first,” continuing its market philosophy premised on full information disclosure.