Last year proved to be a record year for Asia’s securities lending market, according to statistics from financial data firm Markit.

Revenues from sec lending across the continent were up 21% year-on-year to a record $672m, with Hong Kong and South Korea leading the way.

In fact, every major market across the region saw an increase in demand, with volatile Chinese markets offering ample opportunities for Asian short sellers.

“Shares directly exposed to the country’s economic headwinds were in demand, as well as shares that came under pressure from the country’s slowing demand for commodities,” explained Markit analyst Simon Colvin.

The industry generated $672m from lending out stocks over the twelve months. This marks the best year on record beating the previous high of $643m in 2012.

The bumper number was driven mainly by an increase in value on loan. The average daily value of shares on loan on any given day, at $115bn, represented a 15% increase on the previous year.

Specials, which are shares trading at more than 150bps, continued to be a key revenue driver, generating over 80% of the region’s revenues despite only making up 21% of the balance on any given day.

Hong Kong consolidated its position as the most abundant revenue-generating Asian country for the securities lending industry. Its share of the region’s total revenue grew to 40% from 38% in 2014.

Japan’s contribution to the region’s securities lending revenue was down by $5m year over year. Its share of Asia’s revenue fell by 5% to 21%. 

Taiwan was another country that failed to match the region’s bumper year as its total revenue fell by $12m compared with 2014.

Back in August, Taiwan’s Financial Supervisory Commission banned the short selling of stocks below the closing prices of the previous business day in an attempt to stabilise Taiwan's equity market.