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Banks, brokerages under probe over HSCEI-tied ELS mis-selling suspicions

The financial authorities have launched an investigation into the country’s top commercial lenders and brokerages over the irresponsible sales of equity-linked securities (ELS), high-risk derivatives tied to the performance of the Hang Seng China Enterprises Index (HSCEI), market watchers said Sunday. The highly volatile index encompasses 50 shares of Chinese firms traded outside mainland China.

State Street Stops Lending Korean Stocks

State Street Stops Lending Korean Stocks
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Debate on total short selling prohibition intensifies in Korean market

Debates about the complete prohibition of short selling are intensifying in Korea, especially in light of recent illicit short-selling activities by global investment banks (IB), which have angered individual investors. Even the financial authorities, which continuously supported the full resumption of short selling, have now shifted their stance to reviewing the regulation from the ground up.

FSS Governor visits Europe to attract financial investments

Financial Supervisory Service (FSS) Governor Lee Bok-hyun has embarked on a week-long tour, Sunday, which will entail visits to three European countries: Switzerland, the U.K. and Germany. The tour aims to both promote the Korean financial industry and discuss global financial supervision issues.

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