backwardation of k200 futures

JKG

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Does anybody know why k200 march/09 future exhibit backwardation? Does Korea allow to short stocks??
 
You can't short stocks, some funds that are long only lend to other hedge funds in their stable which then allow them to short.

But in general the lack of ability to short means the traditional arb only works one way and thatss long stocks and short futures.
 
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