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The voice spread of “the ban on short selling should be extended”

“Market confusion will be called upon resumption in March”
Concerns about ant repulsion ahead of maintenance in April

While the financial authorities are continuing to resume short selling of stocks with the aim of March 15, voices are rising that the ruling party should extend the ban on short selling. This is due to concerns that the backlash from individual investors called’Donghak ants’ may grow ahead of the by-election in April.

In addition, the Democratic Party’s Supreme Commissioner Yang Hyang-ja appeared on the radio on the 12th and said, “If the market resumes on March 15 (short selling), not only will the market confusion but also the backlash of individual investors will be enormous.” “If the short sale fails to resolve distrust, it can have a negative impact on the market. I have.” Short selling is a method of expecting a fall in stock prices, selling a stock, and buying the stock and paying back when the stock price falls. Individuals have demanded that foreigners and institutions abolish short selling, which is favorable to foreigners and institutions, because a high proportion of short selling increases the pressure on the stock price.

Some of the ruling party observe that the measure to ban short selling will be extended ahead of the by-election in April, just as the measures to strengthen the stock capital gains tax requirement for major shareholders were delayed last year.

In response to the ruling party’s backlash, the Financial Services Commission explained that “nothing has been decided yet” one day after it announced its target to resume short selling. The Financial Services Commission said through a text notification the day before, “The temporary short selling ban currently in effect is scheduled to end on March 15,” and “Plan to finalize system improvements, such as strengthening punishment for illegal short selling with the aim of resuming short selling, and enhancing personal access to short selling. ” Short selling has a net function of adjusting the price of overheated stocks and supplying liquidity to stocks that are not traded. However, an official from the Financial Services Commission said, “(The previous day’s text message) explained the government’s position to balance the government’s position as public opinion seems to be flowing toward the extension of the ban on short selling,” he said. “We do not know whether it will be extended.” Kim Hyung-min kalssam35 Reporter Choi Hye-ryeong @donga.com

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