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Nov 6, 2023 • 5 min read

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South Korea’s Short Selling Ban:

South Korea has reinstated a ban on short-selling stocks until June to create equal opportunities for individual and professional investors. The restriction, which was partially lifted in 2021 for some large-cap stocks, will now apply to all shares. Short-selling occurs when investors borrow shares to sell them, aiming to repurchase them at a lower price later. This strategy profits from the decline in the asset's price.
The Financial Services Commission (FSC) says this move is to ensure fairness amid ongoing market volatility and to address unfair trading practices by foreign banks. The FSC is also setting up a special team to investigate illegal short-selling activities, with a focus on the prohibited practice of naked short-selling, where shares are sold without securing their availability for borrowing.
Recently, two Hong Kong-based banks were caught in such activities and faced penalties. This stringent oversight on short-selling is a part of South Korea's effort to align its market practices with global standards, a key factor for its potential upgrade to a developed market status by MSCI.

BYD’s EU Expansion:

BYD, a leading Chinese electric car maker, intends to establish its inaugural European production plant in Hungary. Hungarian Prime Minister Viktor Orban, who recently visited BYD's headquarters in Shenzhen and met with BYD's top executive Wang Chuanfu, might have influenced the decision.
Although BYD has confirmed its plans for a Hungarian facility, the exact location is yet to be finalized, with an official update expected by year-end. The company has recently exceeded market expectations with its third-quarter earnings for 2023, posting a substantial year-over-year growth in both sales and net profit.
With a reported 38.49% increase in sales and an 81% increase in net profit for the quarter, along with a 57.8% and 131% rise in sales and net profits for the first nine months of the year, BYD's financial performance aligns with their earlier profit forecast.

Berkshire Hathaway Earnings:

Berkshire Hathaway, led by Warren Buffett, reported a significant increase in its operational earnings for the third quarter, with a record cash reserve of $157 billion. The company's operating earnings jumped 40.6% to $10.8 billion, up from last year's $7.7 billion.
Despite this, Berkshire faced a net loss of $12.8 billion, a deeper loss than the $2.8 billion from the previous year, mainly due to $23.5 billion in investment losses. The firm's insurance operations turned profitable, with earnings of $2.4 billion compared to a loss in the same quarter last year, and investment income from these operations rose to $2.5 billion.
Geico, a Berkshire subsidiary, saw its profits rebound to over $1 billion after a loss in the prior year. Berkshire also continued its share buybacks, purchasing $1.1 billion of its stock in the third quarter, totaling $7 billion for the year. Despite a recent downgrade of US credit by Fitch Ratings, Buffett remained confident in US Treasuries, having invested $20 billion over two weeks, according to his statement in August.

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