A growing number of investors are rushing to short Seoul stocks, imposing a double whammy for Korea’s stock market that was already hit hard by global uncertainties raised by the renewed U.S.-China trade row. Most of them are foreign and institutional investors.
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Citing the high hurdles to entering the nation’s short selling market, a growing number of retail investors have claimed the government should regulate short selling to a certain degree.
They even claim on the Cheong Wa Dae webpage that the government should temporarily suspend short selling because their shorting added fuel to the fire when the benchmark KOSPI crashed to near the 1,900 level last week.
Deputy Prime Minister Hong Nam-ki said during a recent media conference that the government is reviewing its plan to temporarily suspend shorting in the nation’s stock market.
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The full article is available at http://www.koreatimes.co.kr/www/nation/2019/08/356_273758.html