Taiwan says to remove rule that discourages stock short-selling

[TAIPEI] Taiwan's financial regulator said on Friday it has lifted a rule that discouraged investors from short-selling local stocks as the stock market has stabilised in the past weeks.

Beginning next Monday, investors can again sell short stocks at prices lower than their prior session's closing prices, the Financial Supervisory Commission said in a statement. It implemented the rule late in August.

Foreign and domestic economic development and overseas stock markets have gradually stabilised and the overall stock market's stability has improved significantly, the regulator said in a statement.

Taiwan's main index hit multi-year lows on Aug 24, slumping along other regional bourses amid concerns a China-led global economic slowdown would crimp the island's export-driven economy.

On Friday before the announcement, it ended up 0.2 per cent at 8,462 points, about 14 per cent above the closing level on Aug 24.

REUTERS