[sbn뉴스=대전] Waiting for new candidates = It is noteworthy whether the’prohibition of short selling’, which ends March 15, will be extended.-
Short selling (空賣渡) literally means’selling without having the goods’.
It refers to redeeming a sell order without actually holding stocks or bonds, or in the absence of willingness to deliver them to the other party.
Short selling is an investment method in which stocks that are expected to fall in stock prices are sold by borrowing and sold, and when the stock price actually falls, it is bought back at a low price and paid off.
Falling stock prices are a profit for short-selling investors.
Shortly after last year’s Corona 19 crash, to prevent further panic in the financial market, short selling was completely banned for six months from March 16, and this measure was extended another six months until March 15.
Financial Commissioner Eun Seong-soo said on the 18th, on whether to resume short selling on March 16th, “Please understand that it is impossible to say so quickly. (The decision on whether to resume) is expected in February.”
Chairman Eun said at a briefing on the ‘2021 business plan’ that “short selling has been decided at a meeting of the Financial Services Commission consisting of 9 people and will continue to do so. I can’t speak definitively.”
Regarding this, the Democratic Party side feels that it is putting weight on the extension side.
Spokesman Shin Young-dae met with reporters at the National Assembly on the 20th and said, “There are many opinions that the overall party atmosphere should be extended (prohibited) and reorganized the system first while solving the harmful effects of short selling in order to protect market liquidity and individual investors.”
Spokesman Shin added, “Haven’t Chairman Eun Seong-su said that he would discuss with the National Assembly,” he added. “In the process of consultation, a conclusion will be drawn.”
An official from the policy committee also met with reporters, saying, “I have more time, so I decided to make a decision while looking at the market situation. We still have time, so we will announce it in late February or early March.”
Rep. Park Yong-jin, Yang Hyang-ja, and Song Young-gil, including Rep. Sang-ho Woo, who announced he was running for mayor of Seoul, publicly insisted on extending the ban on short selling.
Assemblyman Woo also said, “Short selling has been postponed due to the condition that the’tilted playground’ theory between ant investors and institutional investors has caused damage to ant investors, and the prohibition period must be extended as the problem has not been resolved.”
Rep. Song also said on Facebook that “we need to take the time to extend the ban on short selling and come up with an innovation plan for short selling.”
However, Rep. Ogi-hyung stated that short selling should be resumed due to concerns about foreigners leaving.
A media outlet also said, “There is consensus within the party on the extension of the ban on short selling,” and “It is a comprehensive consideration, including system improvement, and we will not eliminate short selling itself.”
Earlier, Eun Seong-soo, chairman of the Financial Services Commission, said on the 18th, “There is no discussion with the politicians such as the ruling party, and when the regular National Assembly in February is held, it will be a process of listening rather than discussing or giving opinions.”
Individual investors, so-called Donghak ants, are fiercely protesting that short selling should not be resumed until the problem is resolved, saying that the proposal to improve the short selling system proposed by the Financial Services Commission should not be able to correct the slanted playground that is disadvantageous to individual investors. If short selling resumes, it could bring cold water to the rising domestic stock market, and eventually only individual investors could suffer another damage.
On the other hand, the ban on short selling was enforced to prevent further panic in the financial market immediately after the Corona 19 crash, so in the current situation when the stock market has reached an all-time high, the financial committee’s basic position is that short selling should be resumed as scheduled.
The net function of short selling, such as removing bubbles, cannot be ignored.
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