The KOSPI index and won/dollar exchange rate are displayed on the electronic board of Hana Bank’s dealing room at Hana Bank in Jung-gu, Seoul on the afternoon of the 15th when the KOSPI plummeted. The KOSPI was 3,085.90, 64.03 points lower than the previous day. The KOSDAQ ended at 964.44, down 15.85 points (1.62%) from the previous day. yunhap news
Ahead of the resumption of short selling, the Financial Services Commission is in the position that it will resume in March as scheduled, but the government is looking at Donghak ants.
The “perpetual petition for banning short selling”, which was posted on the Blue House National Petition, received more than 125,000 consent as of 7 pm on the 15th.
Short selling is a trading technique in which stocks are sold by borrowing, and after a certain period of time has passed, they are mainly used by institutions and foreign investors. It is a trading method that can make a profit if the stock price falls when the stock is paid off.
It was temporarily banned in March last year due to a stock price cut due to coronavirus, but it is expected to be allowed again on March 16th.
Some experts believe that the composite stock index exceeding 3000 is also the effect of the ban on short selling.
However, the Financial Services Commission announced that it will re-approve short selling as scheduled. The Financial Services Commission argues that the stock price of stocks that have been overvalued by short selling should be brought down to an appropriate level to prevent the market from overheating.
In response to the announcement by the Financial Services Commission, individual investors called Donghak ants argued that the market’s volatility and anxiety could amplify and the stock price could plunge, and that the ban on short selling should be continued.
Prime Minister Jeong Sye-gyun said on the 14th, “The government position has not been confirmed, so we cannot disclose it yet,” he said. “Personally, I think that the short selling system is not good.”
In addition, a government official said, “It is a government that is driven by public opinion, so we do not know what conclusions will be drawn.”