The Taiwan Monthly

Trading Policies

2022 Taiwan SBL market and short sale activities

Uncertainties in 2022, including the Russia-Ukraine war, US interest rate hikes and inflation worries, caused the Taiwan stock market volatility.  TAIEX closed at 14,137.69 points in 2022, which registered a 22.4% slump.  The Taiwan SBL market was affected as well.  The SBL balances and total cumulative dollar amount of SBL short sales decreased respectively by 21.5% and 19.5% in 2022, to NT$906.2 billion and NT$480.84 billion.  Due to low market liquidity, short sale turnover accounted for 2.72% of Taiwan’s turnover in 2022, while that in 2021 was only 1.75%.

 

On September 30, 2022, TAIEX dropped to 13,424.58 points, plummeting by 26.31% since the beginning of 2022.  To balance the market and retain investors’ confidence, another phased approach on the short-selling ban has been implemented by the FSC since October 1, 2022.  The daily short selling volume limit has been reduced from the current 30 percent to 10 percent of the average trading volume of the underlying stock during the previous 30 business days.  Our regulator will closely evaluate market trends and assess the appropriate timing to lift the short-selling ban.

 

For further inquiries, please contact Ms. Chen at 0778@twse.com.tw.