The trouble with HK’s new short selling rules

Author: | Published: 9 Mar 2010

Hong Kong’s Securities and Futures Commission (SFC) is pushing ahead with strict disclosure requirements for short positions that the jurisdiction does not need, and that go beyond international standards.

Last week, the SFC released its conclusions to a consultation paper on reporting significant short positions. Hong Kong is set to introduce a disclosure threshold ten-times stricter than that proposed in Europe.

“The conclusions have a number of interesting features, in particular, the disclosure threshold,” said Umesh Kumar of Linklaters. “Short selling has not been so much of an issue here as there is already fairly stringent regulation under primary legislation and stock exchange rules. So the case for change is probably not as compelling as in other markets.”

Unlike Europe...