What are the short-selling mechanisms in other countries?

The term “short-selling mechanisms in other countries” actually has two layers: financial short-selling in stock markets (direct profit-making), and societal-level “life short-selling” (refusing to overcommit, maintaining light exposure, and prioritizing risk avoidance). Below, we explain both separately—with emphasis on the “life version” you’re most concerned about. I. Financial Short-Selling in Stock Markets (Comparative Analysis Across Countries) This is the narrow definition of “short-selling.” Mechanisms across countries are broadly similar, with the core principle being permission for bearish views and corresponding profit-making tools. 1. United States (Most Mature and Market-Oriented) ・ Model: Market-driven, decentralized margin lending (brokers directly provide securities lending) ・ Instruments: Securities lending, options, futures, credit default swaps (CDS), and short-selling ETFs ・ Regulations: ・ Must borrow shares before selling (eligible-to-borrow list required); naked short-selling is prohibited ・ Strict disclosure requirements: daily short-sale volume, monthly short-position reporting, and failed-delivery lists ・ Short-selling firms (e.g., Hindenburg Research) may conduct public investigations, initiate short positions, and profit legally ・ Characteristics: Short-selling serves as a legitimate tool for price discovery and fraud detection 2. Europe (UK/Germany/France; More Stringent Regulation) ・ Model: Hybrid of market-driven and centralized margin lending ・ Regulations: ・ Naked short-selling banned; shares must be pre-borrowed ・ Temporary short-selling restrictions or bans may be imposed during sharp market declines (e.g., 2008, 2011 crises) ・ Sovereign bonds, equities, and ETFs may all be shorted—but subject to threshold limits ・ Characteristics: Greater emphasis on market stability; regulators tend toward “short-selling curbs” during crises 3. Japan / South Korea (Centralized Margin Lending, Strict Regulation) ・ Model: Centralized margin lending via securities finance companies (similar to China’s model) ・ Characteristics: ・ Short-selling permitted under normal conditions, but often fully banned during crises (e.g., South Korea imposed prolonged short-selling bans from 2023–2025) ・ Weak short-selling culture; market sentiment strongly favors long positions 4. Singapore / Hong Kong (Internationalized, Rigorously Regulated) ・ Model: Centralized margin lending via registered institutions ・ Regulations: ・ Short-selling allowed, but liquidity constraints apply—especially for small-cap stocks ・ Strong disclosure requirements and strict penalties to prevent market manipulation One-sentence summary of financial short-selling: All mature markets permit short-selling, but the U.S. offers the greatest freedom, Europe prioritizes stability, and East Asia remains most conservative. II. Societal-Level “Life Short-Selling” (Institutional and Cultural Frameworks Across Countries) This is what you truly care about: When social consensus becomes distorted and markets stagnate at elevated levels, how do different countries enable “bearish individuals” to avoid punishment, hedge risks, and maintain low exposure? 1. Japan: “Passive Short-Selling” in a Low-Desire Society (Most Representative Case) Japan exemplifies a society where the old consensus—buying homes, marrying, having children, and relentless striving—has completely collapsed, giving rise to a comprehensive “life short-selling mechanism.” (1) Institutional Short-Selling: Social security systems act as a safety net, enabling people to “survive without going long” ・ Retirement: National Pension (universal coverage) + Employees’ Pension Insurance (employer-based) + Individual pension plans (iDeCo/NISA)—allowing secure retirement even without marriage or children ・ Healthcare: Universal health insurance with low out-of-pocket costs—illness does not lead to bankruptcy ・ Housing: Low home prices, high rental rates, and abundant public housing ensure stable shelter without homeownership ・ Employment: The erosion of lifetime employment has normalized non-regular employment (e.g., part-time work), making survival possible without overwork (2) Cultural Short-Selling: “Not going long” is socially accepted—and increasingly mainstream ・ Low desire: No home purchase, no car, no marriage, no children, minimal consumption (e.g., Uniqlo, Muji, ¥100 shops) ・ “Lying flat” legalized: NEETs (“Not in Education, Employment, or Training”) and hikikomori (“social recluses”) are widely understood and non-stigmatized ・ Redefined success: Success is no longer “establishing a family and career,” but rather comfort, freedom, and freedom from internal conflict

2021–2027 Global and Chinese FEA Simulation Software Industry Research and 14th Five-Year Plan Analysis Report

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