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Hong Kong Shares Face Risk From Expiring Korean Exotic Notes
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Shorting Ban Drives South Korea Stock Bears to Futures Market
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China Rout Set to Roil $71 Billion Korea Market for Exotic Notes
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Korea set to partially lift ban on stock short selling after 14 months
Posted : 2021-04-29 09:29
gettyimagesbank
South Korea s financial regulator is set to partially lift its ban on short selling of listed stocks starting next week, about 14 months after it imposed it to cope with a stock market rout triggered by the COVID-19 pandemic.
Although retail investors have urged financial authorities to prohibit the hedging practice, some experts said the partial resumption of short selling is unlikely to have a major impact on the stock market, given excess liquidity in the market and an earnings boost.
However, some stocks may be vulnerable to short selling if they have relatively higher valuations than their earnings, analysts said.