Asia’s ‘ant’ and ‘moth’ investors test broker nerves | Malay Mail

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SINGAPORE, Jan 28 — Asia’s retail investors, emboldened by the meteoric rise of US videogame retailer GameStop, are taking on short sellers and making their brokers nervous enough to cut off margin lending. In South Korea, small investors known as “ants” have borrowed so much money to...

A man wearing a protective mask, amid the coronavirus disease outbreak, stands in front of an electric board showing Nikkei index outside a brokerage in Tokyo, Japan January 21, 2021. — Reuters pic

GameStop’s global impact is the latest manifestation of a day-trading mania driven by amateur investors that is boosting the price of assets ranging from cryptocurrencies to new stock market listings. “No-one expected the rally would be this explosive, and trading demand from retail investors would grow this explosive.”

In Hong Kong, retail investors borrowed more than US$50 billion to buy shares in Chinese video sharing app Kuaishou Technology’s float. Such trades lit up market forums such as chat app Telegram, Kakao Talk in South Korea and 2 channel in Japan, as prices reacted to the retail army, though with much less of the fury of Reddit forums and much more enthusiasm for locking in gains.

“Because they’re getting better and because they’re getting more confidence, it’s sometimes the institutional who are getting a bit overrun,” Reynolds said.

 

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