‘Debt-to-share’ counter trading doubles in 3 years… 3 months in a row↑

Individual investors who borrowed money from a securities company to buy stocks could not repay the money, so the amount of counter-trading by securities companies forcibly disposing of stocks has more than doubled compared to 2019.

According to the Financial Investment Association, from January this year to the 26th of this month, the actual amount of counter trades compared to receivables from consignment transactions was counted at an average of 16.7 billion won per day.

It was found that the amount was more than double the daily average counter-trading amount of 7.9 billion won during the same period in 2019, and more than the same period in 2020 (13.6 billion won), which was the early stage of the Corona 19 outbreak.

Receivables are very short-term credits in which individual investors borrow money from a securities company to buy stocks and pay them back three days later.

In counter-trading, if the investor fails to pay the payment for the stock purchased on credit (receivable transaction), the brokerage company forcibly sells the stock to recover the loaned money.

It is interpreted that this is because the domestic stock market is suffering from sluggishness, with the KOSPI index down 11.7% from the end of last year and the KOSDAQ index down 15.8% during the same period.

Meanwhile, as of the 26th, the balance of credit loans for investing in debt and stocks stood at 21.66 trillion won.

The balance of credit loans, which was at the level of KRW 10 trillion until mid-2020, has risen sharply since then and has been maintaining over KRW 20 trillion since February 3, last year.

[사진 출처 : 게티이미지]

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