HONG KONG: SFC issue response to Consultation Expanding the Scope of Short Position Reporting

Wednesday February 24 2016

On 24 Feb 2016, the Securities and Futures Commission (SFC) of Hong-Kong published its response to a consultation, which concluded on 31 December 2015, seeking to expand the scope of short-selling reporting and on corresponding amendments to the Short Position Reporting Rules (SPR Rules).

The SFC has 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 proposed amendments to the SPR Rules will be submitted to the Legislative Council for negative vetting. 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 follow the link at the top of the page to view the consultation response.

To view our previous article on the consultation of 27 November 2015, please follow the link:

http://www.funds-axis.com/news-articles/hong-kong-sfc-proposes-to-expand-short-position-reporting/
Please follow the below link for a list of designated short-selling securities, published by the Hong-Kong Stock Exchange:
Eligible Short-Selling Securities