Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Professor Ernst Lee... from the Hanyang University School
of Business. Professor Lee, good to have you back on.
Thank you.
A big story right now in the stock market is the downfall of the hedge fund Archegos,
run by the Korean-American Bill Hwang, defaulting on its margin calls last week... and its creditors
having to sell Archegos's shares at a loss. The Securities
and Exchange Commission has been monitoring
the situation. But investors are
worried about how deep it goes. Tell us about the
situation, professor.
In the
Korean markets, there's a growing trade in CFDs, or Contracts for Differences. These
are trades using margin that is debt to buy or sell... not an actual security, but the
difference in the price of it between opening and closing. This is something, by the way,
that is not allowed in the United States, for example, and is causing some concern in
Korea. Tell us about the CFD trade, and the risks people are concerned about.
It's springtime, so Korean
retailers are putting on some seasonal sales. The economy is still fragile, but there's
been an increase in consumer confidence, now slightly more optimism than pessimism. Do
you think things will continue in this direction, or where are
we going now?