![The Korea Stock Investors Association is running a publicity bus in the city of Seoul on the 1st to abolish short selling. [이승환 기자]](https://i0.wp.com/file.mk.co.kr/meet/neds/2021/02/image_readtop_2021_106056_16121900334527711.jpg?w=560&ssl=1)
The Korea Stock Investors Association is running a publicity bus in downtown Seoul on the 1st, insisting on the abolition of short selling. [이승환 기자]“When the short sale resumes, it looks like the soldiers (Donghak ants) are building a castle in preparation for the attack of the short selling force.”
An analyst at a securities firm evaluated the surge in the stock price of Celltrion on the 1st stock market. The wings of controversy over short selling, triggered by a game stop in the US, the center of the global financial market, landed in Korea after the weekend. On this day, Celltrion, which has the largest short selling balance in the domestic stock market, surged by about 15%, and a group of individual investors pledged to carry out an anti-short selling campaign. Experts in the financial investment industry advised to pay attention to investment, saying that the game stop phenomenon, which has become full-fledged in Korea, may be an aspect of the stock market overheating.
On this day, Celltrion closed at 371,000 won, up 14.51% from the previous trading day (January 29). Celltrion Healthcare and Celltrion Pharmaceutical rose 9.6% and 7.03%, respectively, and the three Celltrion brothers received the most attention in the stock market on the day.
The sharp rise in the stock price of the three Celltrion brothers on this day was due to the news of the positive news that the autoimmune disease drug’Remsima SC’ was approved for sale in Canada, but it is interpreted that the game stop effect was also reflected. In general, the issue of approval for new drug development or sale by pharmaceutical and bio companies shows a trend of stock prices that decrease due to the selling of foreign and institutional investors after the initial rise in the market. did. Celltrion, which has been regarded as a representative short-selling stock in Korea, was quickly captured by both major short-selling investors for any reason. On this day, Celltrion, the number one net buying stock for foreigners and institutional investors, net bought 3524 billion won and 1176 billion won respectively.
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According to the information data system of the Korea Exchange, as of the 27th of last month, Celltrion’s short selling balance was 2,146.4 billion won, which is the number one short selling item in Korea. Its proportion to the market cap is 4.83%. HLB (313.8 billion won, 6.57%) KMB (217.7 billion won, 7.15%) Netmarble (152.2 billion won, 1.35%) LG Display (1482 billion won, 1.81%) Pearl Abyss (139.9 billion won, 3.36%) Hotel Shilla (1062 billion won) 3.23%) Compared to top short-selling stocks such as Doosan Infracore (92.8 billion won, 5.02%), Celltrion has become the target of short selling.
Celltrion also appeared in the discussion room of “Wall Street Betz” in Reddit, an online community in the United States, which formed a front with short selling forces. One netizen, who is believed to be a Celltrion investor, introduced that “Celltrion is the second most short-selling stock in the world after Tesla,” and asked for a short squeeze by buying Celltrion. The short squeeze refers to a situation in which the stock price jumps more in the process of repurchasing stocks by short-selling investors, which is a loss when the stock price rises when the stock price rises, contrary to expectations of falling betting. The Korea Equity Investors Association, which has been representing individual investors, said, “We will carry out an anti-public sale campaign in Korea according to the US game stop shareholder method against short selling.” “The Korean version of Reddit’s Wall Streetbets, the Case Treat Betz,” was created. Will” said.
The financial investment industry warned that the game stop-foot butterfly effect could also act as uncertainty in the domestic stock market. “The variables related to this issue are the thoughts of individual US investors and the position of the hedge fund, but it is a factor of uncertainty in that it is neither quantified nor predicted,” said Lee Hyo-seok, head of the investment strategy team at SK Securities. It is recommended that this adjustment be used as an opportunity to buy the existing leading stock.”
Heo Jae-hwan, head of global macro team at Eugene Investment & Securities, said, “The game stop issue caused a controversy in the stock market, and the short-term KOSPI rise also smells like a frantic breeze.” It is early to build,” he said. It is explained that amid the high possibility that the issue of game stop, which formed short selling and stock prices soaring due to US financial authorities’ regulations, is highly likely to end due to regulations of the US financial authorities, it is necessary to pay attention to’Do not ask investment’ for short selling target stocks in Korea.
The controversy over short selling at game stop is expected to affect the resumption schedule of short selling in Korea. On the same day, Democratic Party lawmaker Song Young-gil said on his Facebook page, “The US’Game Stop’ situation has great implications for us who are on the verge of resuming short selling.” “If we resume short selling without any supplementary measures, our stock market will There is inevitable concern that foreign short selling may turn into a leading Danta market.”
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