Why the world’s biggest investor has called time on short selling

Elon Musk hailed the decision by Japan’s public sector pension scheme, but their motivations aren’t the same, writes James Moore

Tesla founder Elon Musk has been a vocal critic of short sellers (AP)

The world’s biggest pension fund has sent a shiver through the financial markets by stating it will cease lending shares to those seeking to profit from falling prices.

GPIF, the Japanese public pension fund, has a ¥80tn (£570bn, $733bn) portfolio.

The move affects the overseas part of it, which comes to $370bn, and it could have far reaching implications for the world’s stock exchanges if others follow suit.