ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter

Praised by Elon Musk, Japan fund move fuels short-selling debate

GPIF halts stock lending from $1.5tn portfolio, reducing ammo for negative bets

People pose with the Wall Street Bull in New York's financial district. Lending shares for short selling is a long-established market practice.   © Reuters

TOKYO -- Japan's public pension fund, one of the largest institutional investors in the world, has stirred a international debate with its decision to stop lending shares for negative bets on stocks.

The Government Pension Investment Fund, which had 161 trillion yen ($1.48 trillion) in assets under management as of September, said last Tuesday that share lending risks "creating a de facto vacuum in the fund's holdings."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more