South Korea has begun to rescue the market!
According to Korean media reports on Wednesday, September 28, in order to stabilize the stock market, South Korea is studying a plan to ban short selling.
Earlier, South Korean media reported that the South Korean Financial Services Commission had begun preparing to launch a stock market rating fund at a time when the stock market was sold.
At the same time, the South Korean Ministry of Finance will urgently repurchase 2 trillion won bonds on September 30, and the specific details will be announced after the market closes on Wednesday. South Korea's Ministry of Finance said it will actively consider taking measures to alleviate volatility in corporate bonds and stock markets.
reported that last Friday (September 23), after Kim So-young, vice chairman of the South Korean Financial Services Committee, demanded measures to ease market turmoil, the committee held a meeting of relevant department heads.
During the epidemic in 2020, South Korea established a stock stability fund, but as the stock market rebounded, the fund was no longer used.
Since the beginning of this year, South Korea's stock market has fallen by 28%, a 32% retreat from the high hit at the end of June 2021. After the announcement of
, the decline in the Korean stock market narrowed slightly on the same day.
Previously, the finance minister said that the government plans to use foreign exchange stability fund
In addition, South Korea's deputy prime minister and minister of planning and finance Qiu Qingho said last Sunday that South Korea is ready to take "several" measures to stabilize the financial market.
Qiu Qinghao said in an interview with the media:
"(We) have taken measures and are preparing several other measures to stabilize the market, as the market has seen unilateral fluctuations in the Korean won depreciate faster than other currencies."
Qiu Qinghao added that the government plans to use its foreign exchange stabilization fund to encourage state-owned and commercial banks to meet the foreign exchange hedging needs of local shipbuilders, thereby promoting US dollar supply and alleviating the downward trend of the Korean won.
Amid concerns about global currency tightening and economic slowdown, South Korea's financial markets have experienced substantial fluctuations, including a sharp decline in the Korean won against the US dollar.
Last week, after the Federal Reserve hikes rate , the Korean won against the US dollar fell below the key psychological threshold of 1,400 to 1, setting a record low since March 31, 2009. The Korean won continued its decline this week and is currently at 1,445.04 won against 1 US dollar. The rapid weakening of the won has raised concerns that this could exacerbate already high inflation and prompt capital outflows in search of higher returns.
However, Qiu Qinghao said that the current weakness of the won is different from what South Korea faced during the global financial crisis or the turbulent Asian market in the late 1990s, when the won depreciated much faster than other currencies.
He also pointed out that the country has sufficient foreign exchange reserves, which is a reason to avoid excessive concerns. He said:
"We have about US$430 billion in foreign exchange reserves, ranking ninth in the world. South Korea holds about US$740 billion worth of foreign assets, while both negative in 1997 and 2008."
This article comes from Wall Street News, welcome to download the APP to view more
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-