Court acquits HSBC on charges of violating short-selling rules
The logo of HSBC is seen in this undated photo at its headquarters in Hong Kong. Reuters-Yonhap
A Seoul court on Tuesday acquitted HSBC on charges of violating the nation's short-selling rules, citing a lack of evidence.
The Seoul Southern District Court made the ruling after prosecutors indicted HSBC's Hong Kong unit last March for violating the Capital Markets Act, which restricts all types of short selling, excluding covered ones.
Prosecutors have alleged that three HSBC traders engaged in illegal naked short selling of shares worth about 15.8 billion won ($10.9 million) from August to December 2021.
The court said there was no evidence that the bank's employees were aware of violating rules as they engaged in naked short selling.
Naked stock short selling refers to short selling stocks without having secured or placing orders to secure those to be sold. (Yonhap)