To reflect developments in the securities market following a review conducted earlier this year, the Stock Exchange of Hong Kong will implement changes to the short selling criteria for designated securities.
Date: May 18, 2012
Tags: Hong Kong, Short selling
To reflect developments in the securities market following a review conducted earlier this year, the Stock Exchange of Hong Kong will implement changes to the short selling criteria for designated securities.
According to a statement, the eligibility criterion related to the market capitalisation and turnover velocity will be increased from HK$1 billion (US$129 million) to HK$3 billion, and from 40% to 50% respectively.
The change reflects the fact that the average market capitalisation of listed companies in Hong Kong has grown by around three times and the market turnover velocity has increased from around 40% to over 50% in the past decade.
Had the new short selling eligibility criteria been adopted in the last quarterly review in April this year, 82 out of the existing 646 designated securities would have become ineligible for short selling.
The new regulation for short selling eligibility criteria has been approved by the Securities and Futures Commission and will take effect on 3 July 2012.
More details: http://www.hkex.com.hk/eng/newsconsul/hkexnews/2012/120510news.htm
