Korean media: Two Hong Kong investment banks, HSBC and BNP Paribas, are accused of engaging in naked short selling.
The Financial Supervisory Service (FSS) of South Korea has discovered that two Hong Kong investment banks engaged in naked short-selling, involving a total amount of 56 billion Korean won (approximately 324 million yuan), which could result in record fines. According to the South Korean Economic Daily, the two investment banks are HSBC and BNP Paribas. This is the first time that the FSS has confirmed intentional naked short-selling by investment banks, as most previous cases have involved hedge funds.
The Financial Supervisory Service (FSS) of South Korea has discovered two Hong Kong investment banks engaging in naked short-selling, involving a total amount of KRW 56 billion (approximately CNY 324 million), which could result in record fines. According to the South Korean Economic Daily, the two investment banks are HSBC and BNP Paribas. This is the first time that the FSS has confirmed intentional naked short-selling by investment banks, as most previous cases involved hedge funds. The FSS stated that the investment banks ordered the naked short-selling of 101 Korean stocks from September 2021 to May 2022, including social platform Kakao Corp, with an amount of KRW 40 billion. It is reported that BNP Paribas is the bank involved in this case. In addition, the FSS stated that another investment bank ordered KRW 16 billion in short-selling from August to December 2021, including 9 listed companies such as Samsung's New Lotte Hotel. According to sources, HSBC is the investment bank involved in this case.