Taiwan unveils plans to stabilize stock market amid growing virus concerns

Taiwanese financial authorities said on Wednesday that it had prepared a plan to reinforce the country’s stock market and was considering banning traders from short-selling of positions under specific circumstances.

The plan was revealed a few days after its equities board observed the largest single-day outflow since the financial crisis in 2008. Foreign investors on Monday sold almost $1.82 billion worth of Taiwan stocks amid an oil price war and concerns over the outbreak of the virus.

However, the Head of the Financial Supervisory Commission, Wellington Koo, stated that the agency have not yet found the need to implement the plan.

In a Tuesday report to parliament, Taiwan’s Central Bank said the virus outbreak brings a severe uncertainty for the island country’s economy and might slash up to 0.7% on its economic growth for 2020.

Currently, Taiwan has introduced a fiscal stimulus of T$60 billion to the economy with Premier Su Tseng-Chang pledging that the government would evaluate further plans to cushion the economic hit from the virus outbreak.