S. Korea extends stock short-selling ban until May 2

Описание: 공매도 금지 5월 2일까지 연장…이후 코스피200 등 종목 재개

South Korea's financial regulator extended the ban on short-selling stocks until May 2nd.
This comes after retail investors bought shares of the U.S. company GameStop to force big hedge funds out of their short positions.
Kim Jae-hee explains further.
South Korea's Financial Services Commission decided Wednesday to extend the ban on stock short-selling until May 2nd.
Those who support the ban say it will reduce risks and volatility, while those against it want to use it to make money trading.
"The Financial Services Commission has decided to partially allow short-selling starting May 3rd. Short-selling will be allowed for shares of large firms listed on benchmark KOSPI and the secondary KOSDAQ. This includes 200 firms out of the 917 on KOSPI,... and 150 out of the 1-thousand-470 on the KOSDAQ. Short-selling will still be banned for the remaining 2-thousand-37."
Short-selling is the act of selling stocks that you have borrowed, then buying them back at a lower price later on.
This means the investor expects a stock's price to fall.
The technique, with enough support, can push stock prices lower and even turn downward trends in the market into full-blown panics.
This is why South Korea imposed a six-month ban on the practice last March to lower market volatility in the pandemic.
Then in September, the ban was extended to mid-March this year,... and now with another extension, it'll be in place until May 2nd.
The financial regulator also said that starting April 6th, tougher punishments will apply to practices including naked shorting, which is when the investor short sells stocks that don't actually exist.
Kim Jae-hee, Arirang News.

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2021-02-03, 22:00 (KST)