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06-11-2023, 01:56 PM
https://www.businesstimes.com.sg/compani...-june-2024
SOUTH Korea will prohibit stock short-selling from Monday (Nov 6) until June 2024 to allow regulators to “actively” improve rules and systems, the Financial Services Commission said on Sunday.
Trading with borrowed shares will be banned for equities on the Kospi 200 Index and Kosdaq 150 Index until Jun 30, the commission said in a statement.
South Korea started allowing short-selling of stocks on the two indexes in May 2021 while keeping a pandemic-era ban in place for more than 2,000 equities. Reimposing the full ban on the widely used trading practice could hinder the nation’s efforts to seek an upgrade in a key global index, according to Smartkarma Holdings analyst Brian Freitas.
“The short-sell ban will further jeopardise Korea’s chances of moving from emerging market to developed market,” Freitas said. “Expect bubbles to form in pockets of the market that are favoured by retail investors as short selling no longer acts as a brake on absurd valuations.”
SOUTH Korea will prohibit stock short-selling from Monday (Nov 6) until June 2024 to allow regulators to “actively” improve rules and systems, the Financial Services Commission said on Sunday.
Trading with borrowed shares will be banned for equities on the Kospi 200 Index and Kosdaq 150 Index until Jun 30, the commission said in a statement.
South Korea started allowing short-selling of stocks on the two indexes in May 2021 while keeping a pandemic-era ban in place for more than 2,000 equities. Reimposing the full ban on the widely used trading practice could hinder the nation’s efforts to seek an upgrade in a key global index, according to Smartkarma Holdings analyst Brian Freitas.
“The short-sell ban will further jeopardise Korea’s chances of moving from emerging market to developed market,” Freitas said. “Expect bubbles to form in pockets of the market that are favoured by retail investors as short selling no longer acts as a brake on absurd valuations.”
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