S Korea prepares contingency plans to stem volatility in financial markets
South Korea's financial regulator has come up with contingency plans to stem volatility in financial markets amidst the escalating trade war between the USA and China, Yonhap News reported referring to the vice-chairman of the Financial Services Commission (FSC), Sohn Byung-doo.
The official assured that the regulator was looking into every possible option to minimise the impact of the deepening conflict between Washington and Beijing. For example, the options include softening rules on stock buyback, strengthening regulations on short-selling and cutting the price limit on daily stock transactions.
At the beginning of the week China triggered fears of a currency war in global financial markets as it allowed its currency to fall below CNY 7.0 per USD 1.0 for the first time in 11 years. The move was considered as response to Washington’s threats to impose more tariffs on Beijing, Yonhap News added.Original source: Yonhap News