TSMC Watch posted an update
TSMC’s US-listed shares rebounded nearly 7% in Friday premarket trading as Taiwan prepared tighter limits on short selling. The Financial Supervisory Commission’s new rules take effect on 9 November, KuCoin reports.
Why it mattersThe limits cut intraday short-sale orders using borrowed shares from 30% to 3% of a stock’s average daily trading volume over the previous 30 days. The minimum margin requirement for short selling will rise from 90% to 130%. The report links the market turmoil to investor worries about AI data-centre demand, but that is an explanation of market sentiment, not proof of what drove the sell-off. The concrete change is to Taiwan’s trading rules, with TSMC among the chip stocks caught in the turbulence.
Discuss: Do tighter short-selling limits help steady a volatile market, or risk making price discovery harder when investors are already nervous?
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