Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Thematic (Sector/Industry)

South korea Automobiles and components / Thematic (Sector/Industry)

<p>COVID-19 is pushing the local financial regulators on various aspects. One of them is shorting restriction. The regulators (Financial Services Commission and Financial Supervisory Service) are reportedly considering a temporary ban on shorting due to the COVID-19 outbreak. The average DTV of shorting had remained below ₩400bil. But the number soared to ₩665bil in February. It peaked at ₩836bil on February 28.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/121/088/original/1.png?1583194741" class="editor-image img-responsive" data-smartkarma-image-id="121088"></figure><p>Then, yesterday a new report came out that the local financial watchdog was discussing a different solution. Both the FSC and the FSS are now pondering over the introduction of a Hong Kong-style designated stocks eligible for short selling. It is the FSC directly behind the idea and is pushing the FSS, which is relatively less excited about it.</p>

COVID-19 is pushing the local financial regulators on various aspects. One of them is shorting restriction. The regulators (Financial Services Commission and Financial Supervisory Service) are reportedly considering a temporary ban on shorting due to the COVID-19 outbreak. The average DTV of shorting had remained below ₩400bil. But the number soared to ₩665bil in February. It peaked at ₩836bil on February 28.Then, yesterday a new report came out that the local financial watchdog was discussing a different solution. Both the FSC and the FSS are now pondering over the introduction of a Hong Kong-style designated stocks eligible for short selling. It is the FSC directly behind the idea and is pushing the FSS, which is relatively less excited about it.

Short-Selling in Korea: Hong Kong-Style Designated Stocks or Uptick Rule Change?