TAIPEI (TVBS News) — Taiwan has mobilized its financial defense mechanisms as market turbulence follows newly imposed American tariffs. The National Financial Stabilization Fund (國家金融安定基金), Taiwan's market intervention mechanism designed to counter abnormal fluctuations, announced Monday (April 7) that it has heightened its surveillance of both domestic and international equity markets and stands prepared to convene emergency deliberations if conditions deteriorate further. Officials revealed that an inter-ministerial response team has already been activated to address the escalating tariff situation with the United States, reflecting the government's urgent prioritization of maintaining the island's global competitive position and export capabilities while simultaneously preserving stability across Taiwan's financial markets.
Concrete interventions have already been deployed by Taiwan's Financial Supervisory Commission (金管會), the island's primary financial regulatory authority, with a suite of temporary market stabilization measures scheduled to remain in effect from April 7 through April 11. The regulatory package introduces significant flexibility for investors facing margin calls by expanding acceptable collateral options, while simultaneously imposing sharp restrictions on speculative trading through a dramatic reduction in the daily intraday short-selling quota — slashing it from 30% to just 3%. Also, authorities have substantially increased the minimum margin requirement for short-selling listed securities from 90% to 130%, effectively raising the cost barrier for bearish market positions. According to the stabilization fund committee, this coordinated regulatory response is expected to dampen excessive volatility and restore orderly market functioning during the period of adjustment.
While acknowledging that some degree of market turbulence is unavoidable in the immediate aftermath of the tariff announcement, the stabilization committee expressed confidence that Taiwan's equity markets would ultimately realign with economic fundamentals rather than being driven by speculative sentiment. The committee issued a public advisory urging market participants to maintain a disciplined, analytical approach to investment decisions, carefully evaluating available information rather than reacting impulsively to short-term price movements. Officials emphasized their ongoing vigilance, reiterating that emergency sessions could be convened at short notice to formulate additional political and economic interventions should market conditions warrant further action, with the overarching goals of preserving investor confidence and ensuring the continued efficient functioning of Taiwan's capital markets.
