Hong Kong exchange operator HKEX has announced that it is revising the criteria for its designated securities eligible for short selling to reflect the development of Hong Kong’s equity market.
The revisions are the result of a periodic review under a framework introduced in 2012.
Changes to criteria for designated securities eligible for short selling will become effective as of next Monday, July 4, 2016.
Some of the new and tighter criteria for short selling of stocks include:
- Stocks with market capitalization of not less than $3 billion and an aggregate turnover during the preceding 12 months to market capitalization ratio of not less than 60 per cent (currently 50 per cent); and
- Stocks that have been listed in Hong Kong for not more than 60 trading days, with a public float capitalizsation of not less than $20 billion (currently $10 billion) for a period of 20 consecutive trading days commencing from the second trading day after their listing (currently date of listing) and an aggregate turnover of not less than $500 million (currently $200 million) during such period.
The current criteria, including the criteria that will remain unchanged, and other information on HKEX’s regulated short selling are available on the HKEX website.
The current list of designated securities eligible for short selling is also available on the HKEX website.