The fact a recent short-selling restriction was lifted within a month points to a maturing market, although the exchange still faces an uphill battle with the regulator, say participants.
Partly delayed rules to allow short-selling on the Shanghai-Hong Kong link to boost trading from next week have been dismissed as unclear and a barrier to effective implementation.
Hong Kong’s SFC seeks to send a deterrent message to the market by banning a broker-dealer for three years for pretending his wife is a client on a short-selling order.
Iosco is consulting the industry on short selling in the areas of appropriate controls, reporting, compliance and enforcement systems, as well as possible exemptions.