Meet Korea’s Answer To GameStop

Meet Korea’s Answer To GameStop
Andrew Rummer

over 2 years ago1 min

Mentioned in story

Shares in Doosan Heavy Industries & Construction, an unprofitable Korean manufacturer of power plants that’s attempting to pivot towards wind energy, hit the highest level since 2012 this week as small investors flocked to the stock. 

Like GameStop and AMC Entertainment, Doosan is at the center of a struggle between enthusiastic retail traders and pessimistic short sellers, who sell borrowed stock in order to bet on its price declining. While Doosan has become one of the most shorted stocks on the Korean market since the partial lifting of a short-selling ban last month, it’s also been the most-bought stock by small investors in June.

Those seeking the next breakout “meme stock” that’ll surge to the moon might find happy hunting grounds in Asia, where retail investors have historically played a larger role in markets than in the West. The process of small traders piling into a stock is so much more established than in the US or Europe that they’ve even picked up unofficial nicknames: active retail investors are known as “ants” in Korea and “moths” in Thailand, for example. 

Doosan stock (ticker: 034020) surged 160% from mid May through Monday’s close, before dropping back on Tuesday and bouncing a little on Wednesday. Let’s see where it goes from here...

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