The short selling ban in Taiwan, which had been in effect for over a month, was officially lifted today (26th). The Financial Supervisory Commission announced the return of the short selling order quantities and minimum margin requirements, allowing the stock market to revert to its market mechanisms.

However, the stock market's performance on its first day did not demonstrate the expected strong rebound. Instead, it was affected by international uncertainties, fluctuations in the U.S. markets, and changing policies from Trump, leading investors to adopt a more cautious approach. The market closed down 115.67 points, a decline of 0.53%, ending at 21,536.57 points, with trading volume shrinking to NT$2,952.27 billion, breaking below the 5-day moving average and hitting a nearly two-week low.

While the lifting of the short selling ban brings favorable policies to the market, the willingness of short-term funds to chase prices remains insufficient, indicating that investor confidence has not fully recovered. Analysts point out that Trump's recent changes in attitudes towards tariff policies have made the market difficult to predict, and the risks of U.S.-China trade tensions remain. Additionally, the New Taiwan Dollar has once again surpassed the 30 NT$ mark, putting pressure on export-related sectors.

Today's market saw declines in electronic and financial blue-chip stocks, with the smartphone supply chain facing downward pressure, dragging the overall index lower. Capital is shifting towards thematic stocks in cybersecurity and robotics, reflecting that the market is still seeking safe havens. Overall, the technical outlook indicates a period of consolidation, with a possibility of testing the monthly support level in the short term.

The Financial Supervisory Commission explained that the lifting of the short selling ban is based on recent stabilization in both domestic and international stock markets, with the three temporary measures implemented on April 7 having achieved stabilizing effects. Starting today, the limit on short selling orders is being adjusted back from 3% of the average trading volume over the previous 30 days to the original 30% limit; the minimum margin requirement is being reduced from 130% to 90%. The third measure regarding the relaxation of collateral scope will remain temporarily in place, while discussions for future normalization are ongoing.

The Financial Supervisory Commission emphasized that the initial adjustments to the trading mechanisms aimed to curb excessive speculation and irrational sell-offs, effectively stabilizing investor confidence. As the situation has now matured, a decision has been made to allow market functions to return to normal. Moving forward, continued monitoring of international political and economic dynamics as well as market trading changes will take place, and measures will be implemented as needed in the event of extreme fluctuations to protect market order and investors' rights.