On the 12th, the Financial Services Commission reaffirmed its policy to finish improving the system with the goal of restarting short selling in March.
The Financial Services Commission announced in a letter that was notified on the day that “the financial authorities’ official position regarding the resumption of short selling, the remarks of the chairman of the Financial Services Commission at the weekly meeting of the Financial Services Commission on Friday (8th) and the text message sent on the 11th.”
Finance Commissioner Eun Seong-soo said at a meeting on the 8th, “The people have been an axis of the stock market, and the recent stock index exceeding 3,100 points is a big contribution to foreign net buying.” We plan to make more active efforts to strengthen it.”
The previous day, the Financial Services Commission said in a letter of notice, “The temporary ban on short selling due to the novel coronavirus infection (Corona 19) will end on March 15.” We plan to finish improving the system, such as improving the accessibility of individual short selling.”
The Financial Services Commission drew a line when voices from both inside and outside the politics came out trying to extend the ban on short selling.
In addition, the Democratic Party’s Supreme Commissioner Yang Hyang-ja appeared on YTN Radio on the same day and said, “This is a case of showing that there is patriotism in the capital market,” over the recent stock market by individual investors to buy Samsung Electronics.
Chief Commissioner Yang said, “The’Donghak ants’ are not simply making money, they are investing in Korea,” and said, “It is a situation that has not resolved the fundamental doubts about short selling.
If it resumes in this state, not only the market turmoil, but also individual investors’ backlash will be enormous.”
Congressman Park Yong-jin of the same party also publicly requested to the Financial Services Commission that the resumption of short selling should be carefully reviewed.
Individual investors,’Donghak Ants’, are also protesting that short selling betting on a decline in stock prices can pour cold water on the domestic stock market, which is showing strong performance.
Although the Financial Services Commission set a goal to resume short selling in March, variables still remain.
While the new coronavirus infectious disease (Corona 19) situation has not ended, the direction of the stock market, political movement ahead of the re-election in April, and Donghak ants opposing the resumption of short selling are considered factors that will influence the decision of the Financial Services Commission.
There are also observations that the financial authorities will continue to struggle based on the opinions of market participants, as there is time until the short sale resumes in March.
Regarding the background of sending a text message to reporters about the end of the short selling ban on the previous day, a high-ranking official from the Financial Services Commission said, “As previously stated, it is necessary to decide whether to resume short selling before March 15th.
It has not been decided whether to resume or not, and it is in the process of reviewing how much if it is to be resumed. It seems that the short sale is not resumed, so I sent a text message.”
He said, “There is no decision on whether to resume short selling,” he said. “A matter to be decided by comprehensively considering the necessity of the short selling system in light of the passion of’Donghak ants’ and opinions of politics, the global status and economic scale of the 10th largest Korean stock market in the world. “He added.
/yunhap news