HONG KONG: SFC Publishes User Guide on Expanded Short Position Reporting

Thursday January 12 2017

The Securities and Futures Commission, Hong-Kong (SFC) has published a User Guide for notifications of net Short Positions from 15 March 2017.

With effect on 15 March 2017, reporting will be required for reportable short positions in all Designated Securities eligible for short selling specified by The Stock Exchange of Hong Kong Limited (SEHK). The list of Designated Securities eligible for short selling is published on the Hong Kong Exchanges and Clearing Limited`s website. Starting from 15 March 2017, the SFC will cease publishing the List of Specified Shares on its website.

Prior to making an initial net short position disclosure, the person required to make the disclosure must register with the Short Position Reporting (SPR) Service (once only). Once you have completed the self-registration and activation (Steps 2-4 of the User Guide), the person making the disclosure will be able to submit the Reportable Short Position Form thereafter (Steps 5-6 of the User Guide).

The SPR Service is available on the SFC Online Portal, here.

Background to Changes

Following a consultation issued in November 2015, the SFC expanded short position reporting 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 remained unchanged (the lower of 0.02% of the stock’s market capitalisation, or HK$30 million), while the threshold for collective investment schemes will be set at HK$30 million.

For our Articles concerning this change Please click the links below:

• SFC issues reminder on expanded short position reporting – 30 Sept. 2016
• SFC issue response to Consultation Expanding the Scope of Short Position Reporting – 24 Feb 2016
• SFC proposes to expand short position reporting – 27 Nov. 2015

Please click the link at the top of the page for the short selling disclosures User Guide