The South Korean authorities determined to elevate its quick promoting ban on KOSPI 200 and KOSDAQ 150 shares on Could 3. It’s identified that the partial lifting of the ban is actually an general lifting provided that the shares with bigger market caps and buying and selling volumes represent nearly one hundred pc of quick promoting within the South Korean inventory market.
In terms of KOSPI, a complete of 917 shares are presently listed with the 200 shares accounting for at least 88 % of its mixture worth, 2,060 trillion gained. In KOSDAQ, the place 1,470 shares are traded, the 150 shares characterize half of its mixture worth, 392 trillion gained. As for excellent quick promoting positions, the 200 and 150 shares constituted 94.4 % and 74.5 % as of Jan. 27, respectively.
The issue is that the quick promoting has been led by international buyers and particular person buyers are urging the federal government to handle the uneven enjoying area. Though quick promoting by particular person buyers was not prohibited earlier than the implementation of the ban in March final yr, it was nearly unimaginable as a result of international and institutional buyers are overwhelming when it comes to the size of funding. Within the 10 buying and selling periods instantly previous the implementation, international, institutional and particular person buyers accounted for 50.21 %, 49.13 % and 0.66 % of the entire quick promoting worth, respectively.