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Taiwan partially lifts ban on short-selling stocks
Reuters - 2 hours 51 minutes ago
TAIPEI, Nov 27 - Taiwan on Thursday said it would partially lift a ban on short-selling that was supposed to last through the end of the year in a move originally designed to support the local stock market.
The Financial Supervisory Commission, Taiwan's top financial regulator, said it would allow short-selling on shares which are traded higher from the previous session's closing prices.
The full ban was originally set to last through Dec. 31 to support the stock market, but now part of that ban would expire on Thursday, the commission said on its website.
The commission had indicated as early as mid-November that it might consider ending the full ban early, after investors complained that it represented heavy-handed government interference in the market. [ID:nTP41350]
Around that time, the regulator said one condition for lifting the ban would be the restoration of market confidence.
The commission first imposed the ban in September as part of the government's efforts to prop up the stock market as it tumbled during the global sell-off [ID:nTP263224]
In October, the regulator also halved the daily limit that stocks could fall, allowing shares in individual companies to drop a maximum of 3.5 percent on any single trading day instead of the usual 7 percent.
That move also drew strong criticism from the broader investment community, and drove trading volumes to their lowest levels in nearly eight years as sellers were left holding stocks because they couldn't find buyers for due to the limit.
Following the loud cries of protest, the regulator restored the previous 7 percent limit after two weeks.
Other steps Taiwan has taken to prop up the market have included activation of the National Stabilization Fund, which has a large pool of cash to help support the market.
Taiwan's broader market <.TWII> has lost more than half of its value since peaking in May, hitting a six year low last week. (Reporting by Faith Hung; Writing by Doug Young; Editing by Lincoln Feast)
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