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