Developer on Alibaba Coud: Build your first app with APIs, SDKs, and tutorials on the Alibaba Cloud. Read more ＞
Once the short selling is transparent, the market manipulation will be greatly reduced, which is conducive to the further maturation of the Hong Kong stock market. In the aftermath of the financial tsunami, some overseas markets tightened control of short-selling and even banned short selling, and Hong Kong became one of the few markets that had not changed the regulatory rules for short-selling. A spokesman for the SFC said yesterday that it was aware that the international Securities and Futures Commission (IOSCO) had drawn up four criteria for the supervision of short selling and that the existing short selling control system in Hong Kong was functioning well, but it was also the intention to consult the market on the introduction of the short selling disclosure criteria in order to reflect It is understood that the Technical Committee of the International Securities and Futures Commission published a consultation paper entitled "Short selling Regulation" in March this year in order to establish the criteria for the regulation of short-selling. The consultation, which ended in May, announced the four major criteria for effective short selling, including the need to tighten strict control over the risks to the normal operation of the financial markets, the timely disclosure of short selling information, the need for effective codes and enforcement requirements and the need to set exemption restrictions. The SFC intends to introduce one of the four criteria-the short selling disclosure system-to reflect the intention of the regulator to tighten Hong Kong's short selling restrictions. Hong Kong is not asking for the disclosure of empty warehouses, according to Wen Wei Po, there is no requirement in Hong Kong for the reporting and disclosure of space holders, and the only disclosure requirement is that the disclosure of more than 1% per cent of the vacant position is required when the shareholding is well above 5% and touches upon the reporting level stipulated in the disclosure (SDI) of the regulatory interests. In contrast, the interim provisions in the United States and the United Kingdom require individual space holders to disclose a minimum of 0.25% vacant positions and to report on significant changes in their positions. Introduction of a new mechanism to reduce manipulation behavior Assistant Professor Ge Hongyun, Department of Finance and Policy, Hong Kong Baptist University, wrote that under the existing short selling ordinance, investors only need to declare that the shares they sell are borrowed at short notice, but they do not need to be stated when they are closed, which causes market participants to know just how many stocks are sold on a daily basis, And do not know what the long-term accumulation of the total short selling shares is how much. Ge Hongyun also pointed out that the current system makes it very difficult for the SFC to check the back of a large number of short selling, whether someone is manipulating the market for profiteering, or if these are just rumours, but they are not able to use accurate data at the moment. Thus, in his view, once the short-selling trend is transparent, the market manipulation will be greatly reduced, which is conducive to the further maturation of the Hong Kong stock market.
This article is an English version of an article which is originally in the Chinese language on aliyun.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or
reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or
complaint, to firstname.lastname@example.org. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.
The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion;
products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the
content of the page makes you feel confusing, please write us an email, we will handle the problem
within 5 days after receiving your email.
If you find any instances of plagiarism from the community, please send an email to:
and provide relevant evidence. A staff member will contact you within 5 working days.