Regulation: Local regulators set a global standard

Mon Mar 23, 2009



One of the most positive aspects to come out of the credit crunch for Hong Kong has been the attitude of the regulator to the local hedge fund industry. Neither Hong Kong nor Singapore banned short-selling in September 2008. This policy contrasts sharply with the actions adopted in the United States, Britain, Australia and elsewhere.

“The regulator is well informed, consistent and pragmatic on short-selling,” opines one manager interviewed for this report.

Indeed, there is a fairly widely held belief that if either the Securities and Futures Commission (SFC) of Hong Kong or the Monetary Authority of Singapore had banned short selling (weekly reports detailing short--selling patterns in Hong Kong are now available at the SFC website), the action could well have sounded the death knell for the Asia-Pacific hedge fund industry.

In the event, the SFC saw fit to put out a series of announcements in September...

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