Wednesday June 22 2016
News Source: Global Disclosures
Focus: Short Selling
Type: General
Country: Hong Kong
Pursuant to proposed amendments to the Securities and Futures (Short Position Reporting) Rules (Rules), following the conclusion of a consultation on expanding the scope of short position reporting on 24 Feb 2016, the Securities and Futures Commission (SFC) of Hong-Kong has updated their FAQ’s on Short Position Reporting.
In the consultation, the SFC concluded that short position reporting will be expanded to cover all securities that can be short sold under the rules of The Stock Exchange of Hong Kong Limited. The reporting threshold for stocks will remain unchanged (lower of 0.02% of the stocks market capitalisation, or $30m), while the threshold for collective investment schemes will be set at $30 million.
The Rules only require reporting of short positions in specified shares defined in Schedule 1 of the Rules. Not all Designated Securities specified by the SEHK are subject to short position reporting. The current list of specified shares can be found on the SFC’s website. However, from 15 March 2017, the Rules will require reporting of short positions in all Designated Securities which are determined by the Stock Exchange of Hong Kong (SEHK). The list of Designated Securities will be found on the Hong Kong Exchanges and Clearing Limited’s (HKEX’s) website.
To allow the market a reasonable lead time for preparation, the SFC plans for the amended rules to come into effect on 15 March 2017, subject to the legislative process. The SFC will make further announcements regarding operational reporting arrangements for the expanded regime in due course.
Please click the link at the top of the page for the FAQ’s.
To view our previous article on the consultation, please follow the link: