South Korea to fine two Hong Kong banks for naked short-selling

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South Korea to fine two Hong Kong banks for naked short-selling
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South Korea to fine two Hong Kong banks for naked short-selling

SEOUL - South Korea's stock market watchdog said on Sunday it found two Hong Kong-based investment banks had engaged in naked short-selling, which would likely result in record fines.

Naked short selling of stocks - in which an investor short sells shares without first borrowing them or determining they can be borrowed - is banned by the Capital Markets Act in South Korea.

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