Bonds enter advanced markets...Is 'No Short Sale' an ankle for the stock market? [Anchor Report]

In the financial market, the inclusion of advanced countries' indices is a very important factor in the entry of foreign capital.

Bonds have risen to the ranks of advanced markets, but the stock market has not taken off for more than 30 years.

This time, the 'ban on short selling' was pointed out, so let's find out what happened.

What is important in the stock market is the MSCI index of advanced countries of Morgan Stanley, a U.S. financial institution.

It was developed in 1969 and is used as a benchmark by the international financial market.

According to the level of stock market development, it is classified into three categories: frontier market, emerging market, and advanced market:

There are 23 countries in advanced markets, including the United States, Japan, and Singapore.

Our country is classified in emerging markets along with China and Taiwan.

It has been in place for more than 30 years since it was incorporated in 1992.

It's a place that doesn't match its international status.

It tried again and failed again in June, when MSCI said it "noted that the recent ban on short selling limits market access."

Short selling has a net function of contributing to market stabilization by removing bubbles stuck in stock prices.

Therefore, MSCI's opinion is that short selling is necessary for foreign investors to invest with confidence.

As such, the short selling policy is a major consideration for foreign institutions to look at our stock market.

FTSE Russell, who incorporated our government bonds into the global government bond index this time,

Our stock market has been classified as an advanced market since 2009.

However, this time, it was mentioned that it would "discuss further action if the target of resumption of short selling is not met quickly" while barely maintaining its position.

Amid many interpretations of this 'additional action'
It is pointed out that if Korea changes from an advanced country to an observable country, the stock market may also have a negative impact, which will inevitably lead to deep agony by the authorities.

[Lee Jung-hwan / Professor of Economics and Finance at Hanyang University (YTN News Start): It is true that Korea's short selling policy has been around for a long time compared to advanced countries. In fact, short selling is a good way to reflect the expectation that the stock price will fall.

However, in the eyes of investors in developed countries, there are strategies that we can use when we often talk about investment strategies and strategies that we can use when we get off. Blocking the downward side creates a very difficult situation for investors, and it reflects these things and puts pressure on the government.

It is true that there is pressure to lift the ban on short selling, as foreign investors may leave if it falls into the advanced countries index of FTSE Russell and it could also negatively affect what is commonly called the value-up efforts.]