South Korea Short-Selling Resumption Set to Entice Global Funds
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As South Korea prepares to lift a 17-month ban on short selling, market watchers are expressing confidence that long-term benefits from the resumption of the popular trading practice will far outweigh any near-term volatility.
Come Monday, the $1.7 trillion market will once again be open for short-selling strategies used by hedge funds and global investment banks. That’s expected to boost overall liquidity and help Korea’s bid to be upgraded to developed status from emerging in MSCI Inc.’s equity gauges, as the index provider has called for improving access for foreign investors.