Taiwan Stock Short-Selling Ban Lifting Depends on Tariff Negotiations

On the 29th, U.S. President Trump, marking 100 days in office, signed an executive order to reduce auto tariffs, which boosted market sentiment; the Dow Jones Industrial Average closed up 300 points, and the Taiwan Stock Exchange opened lower but rallied on the 30th. Attention is focused on when the short-selling ban will be lifted; Financial Supervisory Commission Chairman Peng Chin-lung emphasized two key factors.
Peng stated, "We need a bit longer to observe international circumstances, particularly regarding the outcomes of tariff negotiations and changes in other relevant economic parameters." Legislators are also concerned about market performance, noting that Taiwan's stock market capital was 24 trillion in 2015 and is expected to exceed 70 trillion by 2024, while the National Stabilization Fund remains at 500 billion. However, the fund has intervened eight times, with the largest injection being 122.7 billion during the internet bubble in 2000. Legislators suggested that the FSC carefully evaluate the possibility of expanding the fund's scale.
KMT legislator Lai Shih-pao highlighted that only 54.5 billion was used during the 2022 Russia-Ukraine war, indicating that 500 billion is more than sufficient. Peng responded, "The market size when the National Stabilization Fund started is significantly different from now. Therefore, if it is possible to strengthen the market stabilization mechanism, we would support it." Additionally, regarding the amendment of the Insurance Act, the current proposal from the Executive Yuan states that in cases where insured individuals owe debts, taxes, or face fines, the amount of surrender value from life insurance contracts that does not exceed the fixed minimum cost of living shall not be subject to seizure or enforcement. The FSC hopes to ensure the stability of citizens' lives.