萬國法律事務所

On 12 October 2008 the Executive Yuan issued measures to stabilize the current stock market. For the period from 13 October 2008 to 17 October 2008, the existing 7 percent down-limit was halved to 3.5 percent, while the limit-up remained unchanged at 7 percent. The Taiwan stock market dropped 3.32 percent during that period, less than the stock markets in Asian cities, indicating that the reduction of the Taiwan stock market's limit-down from 7 to 3.5 percent was effective in stabilizing stock market confidence. Given the continuing risk volatility of international stock markets, however, on 19 October 2008, a joint decision was reached following discussions by the Executive Yuan fiscal and monetary departments to extend the current 3.5 percent down-limit to 24 October 2008. In view of such measure has alleviated the impact resulting from financial turmoil and restored the investors’ confidence as well; in the meantime, there were advocates for lifting such restriction so as to increase market liquidity, the FSC decided to revive 7% down-limit effective on 27 October 2008.