Daily BriefsMacro

Macro: Changing Rules for Shorting Stocks & Retail Participation in the Korean IPO Market in 2021 and more

In today’s briefing:

  • Changing Rules for Shorting Stocks & Retail Participation in the Korean IPO Market in 2021
  • UK: Stumbling into a Fall for Winter
  • Korea – Not Out Of The Woods

Changing Rules for Shorting Stocks & Retail Participation in the Korean IPO Market in 2021

By Douglas Kim

In this insight, we discuss the details regarding the changing rules for shorting stocks as well as for retail participation in the Korean IPO market in 2021.

  • On 11 November, the Financial Services Commission (FSS) announced that it will finally lift the ban on the short-selling of stocks on 15 March 2021. This ban has been in place since 15 March 2020.
  • One of the major changes in rules for the Korean IPO market next year will be that the shares of public offering stocks that the retail investors can subscribe could be increased to around 30% of the total IPO allocations, up from the current 20% allocations limit. 

UK: Stumbling into a Fall for Winter

By Phil Rush

  • GDP growth continued to slow in September to a mere 1.1% m-o-m. Losing momentum at this rate implies over a quarter of the lockdown hit would fail to be mechanically recovered. A second lockdown in November is set to compound the economic damage.
  • Mobility metrics have only fallen to August levels as the public appears to be reluctant to stay home this time. However, prohibitions on economic activity mean the hit to output is still set to be large, where I assume a level similar to June.

Korea – Not Out Of The Woods

By Sharmila Whelan

Korea may have returned to growth in the third quarter but the economy is not out of the woods. Job losses are mounting, real interest rates are rising while companies remain cautious about capex and the outlook for corporate profits. The upshot is that domestic demand is weakening. We do not rule out a further expansion in fiscal spending to support the economy.


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