How to stabilize the stock market decline?

Huang Tianmu, chairman of the Financial Supervisory Commission, said that various measures to stabilize the stock market, including the "limitation order", will not be ruled out.

(Photo by reporter Fang Bin)

[Reporter Wang Menglun/Taipei Report] The United States raised interest rates by 3 yards again, impacting global stock markets. Taiwan stocks also fell below the "Wansan" level today; legislators asked how to stabilize the decline of Taiwan stocks, in addition to the "air ban" Besides, are you considering limiting the rise and fall of Taiwan stocks (drop limit order)?

Huang Tianmu, chairman of the Financial Supervisory Commission, responded that various measures to stabilize the stock market, including the "limitation order", will not be ruled out, and we still retain this option.

Today, Huang Tianmu, chairman of the Financial Supervisory Commission, went to the Finance Committee of the Legislative Yuan to give a special report and consultation on "In response to the impact of the international situation, the government's policy measures and benefits to stabilize the stock market".

Please read on...

Kuomintang legislator Lai Shibao asked that the FSC has implemented a "conditional air ban", but has it actually worked?

Will you consider adopting a "total air ban" in the next step?

Huang Tianmu responded that the current implementation is that individual stocks have fallen by more than 3.5%, and the next day is not allowed to sell below the flat price; as for the comprehensive air ban, this stabilization measure has been used before, and of course it is within the scope of consideration, but it depends on the stock market. After all, it has only been implemented once or twice in the past.

Secondly, Guo Guowen, a legislator of the DPP, also asked whether a comprehensive air ban is the next step?

Will it take into account the limit on the decline, that is, the "limitation order for Taiwan stocks"?

Huang Tianmu said that in the past October 2008 (financial tsunami), the Taiwan stock market had implemented a "halving limit" (3.5% at that time); considering that the United States will continue to raise interest rates in the future, we certainly do not rule out various tools, reserve This feasibility (drop limit order).

In addition, Shen Fahui, a legislator of the Democratic Progressive Party, also pointed out that the effectiveness of the Taiwan stock market stabilization measures currently introduced by the FSC remains to be seen. The momentum of the stock market, or even the worst-case scenario, is "volume shrinking and price falling."

"This is one good, no two good!" Huang Tianmu said bluntly. The measures to stabilize the stock market increase the cost of short-selling or directly limit short-selling, but it will also affect the trading volume. Therefore, the financial management committee must comprehensively evaluate and weigh the pros and cons as a whole.

Huang Tianmu also emphasized that it will take some time for the U.S. to raise interest rates, but it is not an immediate solution to “shock therapy”. We will introduce appropriate measures at the right time, and we do not hope it will take too long to avoid affecting the normal trading momentum of the stock market.

In the face of endless stock market falls, Huang Tianmu, chairman of the Financial Regulatory Commission, stressed that he would retain the option of limiting the rise and fall of Taiwan stocks (photographed by reporter Wang Menglun)

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