Last week, the global financial stage witnessed two starkly contrasting approaches to short selling as South Korea and the Philippines charted their courses. South Korea announced a comprehensive ban on short selling activities, effective until June 2024.
In contrast, the Philippines welcomed short selling into its market starting from November 6, 2023. These divergent decisions highlight the unique strategies employed by different nations in their quest for economic stability and market enhancement.
For all latest news, follow The Daily Star’s Google News channel. South Korea’s short selling ban is the second time in two years that the country has taken such a measure. The Financial Services Commission (FSC) said that the ban is necessary to stabilise the stock market and protect investors. If you dig further, the timing of this ban is also interesting.
The Bloomberg article titled ‘South Korea to Ban Short Selling of Stocks Until June Next Year’ published on November 5, 2023, stating “The regulator’s announcement comes ahead of general legislative elections to select National Assembly members in April. Some ruling party lawmakers have urged the government to temporarily end…
