Taiwan Stocks Plunge in AI Selloff as Regulator to Restrict Short Selling, Weighs Stabilization Fund

November 6: According to Bloomberg, as the AI stock selloff intensified, the Taiwan Weighted Index plunged as much as 9% intraday on Friday, sinking into a bear market and marking its largest weekly decline since 2001. Taiwan's financial regulator (FSC) said after the close that it will restrict short selling from November 9, capping the daily order volume for same-day securities-lending sales at 3% of the stock's average daily trading volume over the past 30 days; Taiwan's finance authorities also said they are ready to deploy a NT$500 billion (about US$15 billion) stock market stabilization fund. BitMEX co-founder Arthur Hayes shared the report on X, saying "the AI bailout has begun."