When the COVID-19 pandemic sent global equity markets into free fall earlier this year, governments in Europe and Asia moved to restrict the short-selling of shares.
But in contrast to countries including France, Italy and Belgium, which allowed short-selling to resume in May, tight restrictions on short-selling remain in place in Malaysia and until October 1 Thailand. South Korea recently extended a complete ban on the practice until March next year.
Given that most Asian equity markets have risen above their 2019 highs, the enduring lack of trust surrounding the practice is difficult to understand.
The full article is available at https://asia.nikkei.com/Opinion/Asia-must-rethink-bans-on-short-selling