Taiwan Activates Market Stabilization Measures Amid AI Stock Sell-Off

Taiwanese authorities announced the activation of market stabilization mechanisms, including the National Financial Stabilization Fund, in response to severe stock market volatility triggered by a global sell-off in AI-related stocks. The Taiwan Capitalization Weighted Stock Index (Taiex) tumbled 12% during the week, dropping roughly 20% from its year-to-date high into a technical bear market amid concerns that regulatory tightening could slow AI compute infrastructure buildouts and hit hardware demand. The fund can deploy up to NT$500 billion, while financial regulators also announced tightened short-selling restrictions effective November 9 and encouraged share buybacks among listed companies.