The Korea Exchange, South Korea‘s sole market operator, has moved to boost investor attention to small cap shares through a new web portal launched in May.
The core function of the web portal, dubbed “Smile,” is to release technology analysis reports of small-cap companies that have little analyst coverage. Analysts in Korea have found it hard to cover all listed shares -- the number of which amounts to 2,000 in the top-tier Kospi and the second-tier Kosdaq combined.
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A screenshot of Smile desktop version (KRX) |
By teaming up with a technology assessment center outside of the KRX, technology analysis reports about companies with little coverage have been regularly posted on Thursdays at 4 p.m. As of June 21, there have been 21 new technology analysis reports released on Smile since the launch.
The KRX expected the move to enhance liquidity of shares of small-cap companies, largely overlooked by investors, as well as lower the risk of such shares through increased operator-driven coverage. Lack of news about and investor experience in small cap shares have been translated into inherent risks to investors.
As for listed companies not willing to publicize company information, the KRX has come up with ways to process raw data of the firms and measure projected share liquidity and price forecast.
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(KRX) |
Investors can access the website with the reports and other materials available at http://smile.krx.co.kr
