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South Korea to allow short selling of major stocks from May

Lifting of yearlong ban deals blow to retail investors who opposed practice

South Korean regulators say there is no need to continue a blanket ban on short selling that was introduced to maintain market stability amid the COVID-19 pandemic.    © EPA/Jiji

SEOUL -- South Korea's financial regulator said on Wednesday it will allow traders to resume short selling of major stocks in May despite pressure from retail investors to make the temporary ban on the practice permanent.

The Financial Services Commission said short selling will be allowed on 350 stocks in the leading Kospi 200 and Kosdaq 150 indexes, starting May 3. The ban was supposed to be lifted on March 16, but the financial regulator said it needed more time to develop its trading system. The two indexes include companies such as Samsung Electronics, SK Hynix, LG Chem and Celltrion Healthcare. 

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