[센터뉴스] Short selling resumes on May 3… Only KOSPI 200, KOSDAQ 150, etc.

<은성수 / 금융위원장> “It is difficult to completely ban short selling or indefinitely, which is a global standard.” “We decided to minimize the market impact through partial resumption.”

The center news of the day starts.

▶ Partial resumption of short selling on May 3… KOSPI 200·KOSDAQ 150

The Financial Services Commission held an extraordinary meeting yesterday and decided to partially resume short selling of large stocks such as KOSPI 200 and KOSDAQ 150 stock index constituents from May 3rd.

The ban on short selling, which was scheduled to end on the 15th of next month, will be extended for 45 days.

▶ Individual short selling and differential investment limits allowed… Up to 30 million won

Today, the first trading day since the announcement of the ban on short selling. In the early days of the stock market, the KOSPI index showed a decline in net selling by foreigners and institutions, which at one point was threatened with the 3,100 line.

The KOSPI 200 and KOSDAQ 150 are indexed by selecting stocks with high market capitalization and high trading volume based on market representativeness, liquidity, and industry representativeness among listed stocks on the KOSPI and KOSDAQ markets.

KOSPI 200 includes 22% of all stocks such as Samsung Electronics, SK Hynix, and LG Chem Celltrion, and KOSDAQ 150 includes 10% of all 1,470 stocks such as Celltrion Healthcare, Celltrion Pharmaceutical, and Kakao Games.

▶ Partial resumption of short selling… “Election use” vs “meaning decisions”

So why did you partially resume short selling for these stocks?

The Financial Services Commission said that they took into account the fact that these stocks are familiar to domestic and foreign investors, have high utilization, such as linkage transactions between derivatives markets and stock markets, have a large market cap, and have a high liquidity, so short selling has limited impact on prices. .

Meanwhile, the authorities also came up with measures to address the so-called’tilted playground’, which is advantageous only for institutions and foreigners.

From May, it was decided to allocate 2~3 trillion won worth of short selling stocks separately for individual investors. This is a measure that reflects the claim to increase opportunities for participation in short selling.

However, to protect investors, the initial investment amount for short selling was limited to KRW 30 million, and investment training was also mandatory.

Among OECD member countries, Korea is the only country that has banned short selling.

Therefore, the resumption of short selling is inevitable, and the Financial Services Commission explained that it would induce a soft landing instead.

Meanwhile, individual investors, the financial investment industry, and civic groups are showing mixed reactions to this decision by the Financial Services Commission.

The Korea Equity Investors Association, a group of private investors, voiced complaints about the ban, saying it was “a measure for elections.”

Next, let’s take a look at some of the key news we’ll have in the afternoon.

▶ National Assembly votes on impeachment bill for Judge Im Seong-geun in the afternoon… Influential

The National Assembly will hold a plenary meeting at 2 pm today to vote on the impeachment prosecution of the head of the Busan High Court, Lim Seong-geun, who was involved in the Judicial Nongdan as Chief Justice of the Supreme Court Yang Seung-tae.

In the impeachment bill, led by the ruling Democratic Party, 161 lawmakers, including the pan-passport party, were named as co-sponsors.

It is expected that the passage will be dominant as the number of voters alone has exceeded the quorum of 151 votes.

Yonhap News TV article inquiries and reports: katok/line jebo23

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2021/02/04 12:42 sent