Taiwan Stocks Plunge 1873.08 Points, Intraday Crash Once Hit 3737.67 Points
Taiwan stocks plunged 1873.08 points today, closing at 39701.64 points. Following sharp losses in U.S. stocks, Taiwan stocks collapsed 3737.67 points in early trading, setting the largest intraday drop in history, though losses later narrowed to close down 1873.08 points, the 4th largest closing-point decline on record. After the National Stabilization Fund announced its 10th market intervention in history, the FSC also announced in the evening that 5 measures will take effect from the 9th. FSC Chairman Peng Jin-lung said in the morning that Premier Cho Jung-tai had instructed the FSC to take responsive measures for today's stock market, and the FSC would assess market conditions and hold a meeting in the afternoon to propose responsive measures.
5 Major Measures Effective November 9 to Stabilize Market Order
The FSC said in an evening press release that, affected by the international political and economic situation, Taiwan stocks have seen significant volatility recently, and the FSC continues to closely monitor international financial conditions and global stock market changes, with relevant contingency measures prepared. To maintain order and stability in the securities market, the FSC announced 5 major measures effective November 9. First, the daily intraday limit on securities lending sell orders will be lowered from no more than 30% of the average daily trading volume of the security over the previous 30 business days to 3%. However, securities lending sales by securities firms for hedging needs related to issuing put warrants, index investment securities, structured products and equity derivatives business conducted at business premises, serving as liquidity providers for beneficiary certificates, or futures proprietary traders serving as market makers for stock options or stock futures, or by securities firms serving as stock market makers to provide bid and ask quotes or for hedging needs, are not subject to the restriction.
Second, the minimum margin requirement for short sales of listed and over-the-counter securities will be adjusted from 90% to 130%. Third, with the consent of securities finance enterprises or securities firms, in addition to the inclusion of odd-lot listed stocks and emerging-market stocks into the scope of collateral for margin payments since 115年3月30日, investors may use other diversified collateral with market liquidity and objectively and reasonably assessable value to cover shortfalls in initial margin for margin purchases or margin deposits for short sales, such as foreign securities held through sub-brokerage.
Encouraging Treasury Stock Buybacks and Investor Conferences, Continuing to Monitor International Situation
Fourth, as applications by listed companies to buy back treasury shares have already adopted electronic filing, the FSC encourages listed companies to assess implementation of treasury share buybacks in a timely manner based on their own funding arrangements, financial conditions and buyback purposes. Fifth, listed companies are encouraged to hold investor conferences or participate in thematic earnings presentations in a timely manner, and proactively explain to the public their business conditions, financial performance, industry outlook and future development strategies. The FSC said it will continue to monitor changes in the international financial situation and domestic capital market conditions, and adjust relevant stabilization measures in a timely manner, advising investors to invest prudently according to their own investment strategies and respond rationally.