Cancellation of Short-Selling Ban Raises Concerns Among Investors About Market Turbulence

The Financial Supervisory Commission announced the cancellation of the short-selling ban effective from the 26th, raising concerns among investors that "collecting umbrellas in rainy weather" could lead to market turbulence around the Dragon Boat Festival.
As Trump plans to impose a 50% tariff on the EU starting in June, the trade war has reignited after previously cooling down. Following a drop of 400 points in the Taiwan Futures Index on the 23rd, the Taiwan stock market faces pressure, leading many investors to speculate about a potential shift in market dynamics as the Dragon Boat Festival approaches.
The Financial Supervisory Commission's three key measures will revert on the 26th, including limits on the daily amount of short-selling transactions and changes in minimum margin requirements. A broker commented that the withdrawal of the short-selling ban will indeed impact the stock market today, coupled with the fact that there are only four trading days before the Dragon Boat Festival, increasing risk awareness among investors.
In the foreign exchange market, the New Taiwan Dollar is in a battle to defend the 30 mark, having recently appreciated significantly. Analysts believe that if the US dollar index weakens, it is quite possible for the New Taiwan Dollar to test the central bank's bottom line and potentially return to the 29 range.