Hong Kong revises short selling stock list

Hong Kong revises short selling stock list

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Hong Kong’s stock market operator has made some changes to its list of securities eligible for short selling.

A total of 42 stocks have been delisted, including First Shanghai Investments and China Energine International.

The latter, which develops wind turbine and solar projects, issued a profit warning in March.

Removal from the list means investors can no longer bet that the stock will drop in price by borrowing, selling, buying back at a lower price and returning shares to the lender.

Meanwhile, 23 new stocks have been made eligible for short selling by the stock exchange - a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX).

These include China International Marine Containers, which sells and transports containers, vehicles and airport equipment.

Commercial lender Bank of Zhengzhou has also been added to the list along with cinematic-technology provider IMAX China.

The total of 857 stocks are currently available for short selling purposes in Hong Kong.

Data from Markit shows Hong Kong managed to consolidate its position as the most abundant revenue-generating Asian country for the securities lending industry in 2015.

Its share of the region’s total revenue grew to 40% from 38% in 2014.

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