South Korea is considering banning short selling—welcome to the A-share universe, Korean stocks. According to Yonhap News, exchanges are evaluating the technical feasibility of temporarily banning short selling and narrowing price fluctuation limits. A-shares have been mocked for years for banning short selling, yet after a 40% drop, South Korea’s first reaction is the same. When markets rise, everyone praises free markets; when they fall, regulation suddenly feels reassuring. Honestly, sometimes regulation is there to protect you. On May 22, eight Chinese regulatory bodies jointly cracked down on cross-border stock trading—Futu, Tiger, and Longbridge were all fined, and mainland retail investors could only sell but not buy. Back then, countless people complained about restrictions on freedom. What happened afterward? The Nasdaq dropped 10%, and the KOSPI fell nearly 40%. Those who didn’t buy in? Using today’s popular term, they probably experienced JOMO (Joy Of Missing Out). But A-shares have their own struggles too. Banning short selling doesn’t prevent declines—when it’s time to fall, A-shares fall just the same. South Korea now wants to emulate A-shares by banning short selling, but A-shares have been banned for years—and still haven’t learned the lessons. Tools can be restricted, but human nature cannot; there will always be retail investors 🤡
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