South Korean stocks fell 3% as the country officially lifted its short selling ban imposed in November 2023. The move is expected to boost foreign investment and improve market liquidity.
“The lifting of the short selling ban should attract foreign investment back to S Korea, allowing speculative and hedging activity, improving overall market liquidity,” S3 Partners wrote.
“The re-instatement of short selling is also seen as a step toward the country achieving developed market status from MSCI.”