Two Hong Kong-based investment banks might be slapped with record-breaking fines over suspected naked short-selling that involves KRW56 billion in total (approximately $324 million), the Financial Supervisory Service (FSS) of South Korea expressed.
According the Korea Economic Daily, the two investment banks are the Hongkong and Shanghai Banking Corporation Ltd. (HSBC) and Bank BNP Paribas, respectively. The report added that this marks the first incident in which the FSS have confirmed intentional naked short-selling by investment banks, with the majority of previous cases involving hedge funds.
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