Taiwan's financial regulator announced a package on October 07 to help bolster the stock market after a recent heavy sell-off of stocks by foreign investors. Net selling by foreign investors has reached T$14.3 billion ($477 million) so far in October, compared to net sales of T$59 billion for all of September. That was a sharp turnaround from net purchases in each of the previous six months through August.
Under the eased rule, limits will be calculated separately for borrowing by investors to go long or short on stocks, the Financial Supervisory Commission (FSC) said in a statement.
The current limits are smaller, as they combine the two. The FSC also said it would raise the margin trading ceiling for Over-the-Counter stock exchange trades, to 60 percent of the stocks' prices from 50 percent now.
"We hope the package can boost turnover by 3 to 5 percent," said the regulator's chairman. William Tseng. The new measures will take effect from November 10.
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