[周刊王CTWANT] Taiwan stocks have fallen by 11% since September, and once fell below the 13,928 defense line of the National Security Fund. In addition, the guarantee maintenance rate of the whole household has dropped from 160% to 158%, and the proportion of foreign borrowing and selling has soared. shot. The Financial Supervisory Commission announced yesterday (30th) that it will implement two major measures to save the market: the foreign-invested short-selling order and the increase in the margin ratio of securities lending.
This is also after the outbreak of the global epidemic in March 2020, and after two and a half years of violation, the Financial Supervisory Commission has imposed an air restriction order on foreign investment. From 2008 to this year, the Financial Supervisory Commission has acted to “save the market” five times. However, 2008 was a global systemic storm. The stock market did not rise after the act. In 2015, 2016 and 2020, the market rose by 3.8% to 26.24%. range, and effectively reduce air power.
This time, the Financial Supervisory Commission observed the volume of foreign borrowing and selling of securities in the last few days of September, which accounted for 3.76% of the trading volume of Taiwan stocks, which is similar to the proportion in 2020, but the amount of 91.8 billion yuan this year is nearly 65% less than that in 2020. So the limit is only 20%, not 10% in 2020.
Zhang Zhenshan, director of the Securities and Futures Commission, said that two measures to stabilize the stock market will be launched from now on. First, reduce the daily volume of investors’ daily intraday borrowing and selling, from “30% of the average volume of the first 30 days to 20%”, and second , The margin ratio of securities lending has been increased from 90% to 100%, which can increase the cost of short-term parties, slow down the selling pressure of Taiwan stocks, and boost investor confidence.
Among the two rescue measures, the first one has the greatest impact. According to the legal person, 90% of the short-selling by borrowing securities is foreign capital. This move can limit the pressure of foreign capital on large stocks and reduce the volatility of individual stocks due to the level of borrowing of securities, which is effective. To ease the “air attack” weight stocks, lift the stock market.
Secondly, the margin ratio of securities lending has been raised from 90% to 100% this time, which is also milder than the 120% increase when the mainland stock market collapsed in January 2016. Zhang Zhenshan also explained that the decline this year is not as deep as that of the previous year, and the financial management committee is timely and appropriate. to implement appropriate policies.
Restricting borrowing and selling and increasing the margin ratio of securities lending are only medium-term measures, and ultimately are “conditional short-term ban” and “comprehensive short-term ban”. Zhang Zhenshan said that the interest rate hikes in major countries such as the United States have not yet ended. These two measures to stabilize the stock market have no time limit, and it is also difficult to predict the future increase or decrease of the Taiwan stock price. Restore investor confidence and maintain market stability.
See more CTWANT articles
Husband’s monthly salary is 40,000 yuan but he wants to buy luxury goods. The woman wants to communicate with her husband.
Xiaoxun is tired of taking care of Zhuang Kaixun who is recovering, and the relationship gradually develops
How to eat until you are full to be smart? Experts teach battle “2 kinds of food”: insiders do not touch “even employees themselves do not eat”