Asia must rethink bans on short-selling


Source: nikkei.com nikkei.com

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Paul Solway is a director and the communications officer at the Pan Asia Securities Lending Association. When the COVID-19 pandemic sent global equity markets into free fall earlier this year, governments in Europe and Asia moved to restrict the short-selling of shares. But in contrast to countries including France, Italy and Belgium, which allowed short-selling to resume in May, tight restrictions on short-selling remain in place in Malaysia and until October 1 Thailand. South Korea recently extended a complete ban on the practice until March next year. Given that most Asian equity markets have risen above their 2019 highs, the...