[KRX] Partial resume of short selling on KOSPI 200 and KOSDAQ 150 stocks

 

 

 

KRX has announced on 3rd February 2021 that short selling of Korean stocks will be resumed from 3rd May 2021 but restricted to only KOSPI 200 and KOSDAQ 150 consisting stocks to minimize the market impact.

 

Short sell has been banned on Korea market since September 2020 to prevent sudden volatility due to COVID-19 situation.

This partial resuming will be only limited to KOSPI 200 and KOSDAQ 150 products and short sell for other stocks will not be allowed till further notice.

 

Short sell is a very sensitive topic in Korean stock market since it is only allowed for institutional investors and foreign investors.

Local individual investors blame short selling is the main cause of dropping market values and not a fair game for small investors.

 

Apart from the announcement, KRX has decided to allow short sell for individuals through the local brokers limiting to around 30 million Korean Won for each investors.

 

This upcoming change is the hot issue for the market currently and discussions are still ongoing as the individual investors are still fighting to permanently ban the short selling.

 

KOSPI index has hopped over 3100 for the first time in market history even through the pandemic and has gained a lot of interests and investors.

What this regulatory change will bring to this unprecedented bullish market is something to keep an eye on.

 

 

reference link: open.krx.co.kr/contents/OPN/05/05000000/OPN05000000.jsp#fe3647848b826aa1ddee224c4b5526f4=1&view=24990