Politics & Regulation

HK managers express concern over new short-selling reporting thresholds

by

The proposed short selling reporting regime announced by the Hong Kong Securities and Futures Commission last month has raised considerable concern among local hedge fund managers, many of whom believe that the reporting thresholds (0.02% of issued capital of the value of the listed company or shorting position value of HK$30 million [$3.86 million], whichever is lower), are very low.

The proposed thresholds are much lower than that in international markets, such as 0.25% in the UK and in France, and 1% in Singapore, escalating costs for managers, especially the smaller ones, and perhaps resulting in an information