State Street Bank and Trust Company (SSBT), one of the world’s largest custodian banks, will suspend lending stocks traded in Korea, fueling speculation that the suspension can trigger a further exodus of foreign capital from Seoul following its ban on short selling.
According to industry sources, Nov. 10, SSBT said in a letter to major institutional investors worldwide last month that it will cease lending services for Korean stocks electronically beginning next year.
The planned suspension follows the Korea’s Financial Services Commission (FSC) Nov. 5 announcement that it would impose a ban on short selling through June 2024, in the name of preventing global investment banks from exploiting the trading strategy to make illicit gains.
The full article is available at https://www.koreatimes.co.kr/www/biz/2023/11/602_362959.html