Short Selling

Overview

Short selling refers to the sale of securities the seller does not own. Financial crises have prompted various governments to ban and / or enhance the reporting of short sales, the latter being the case in Hong Kong.

Introduction

Types

Regulation

Reporting Regime

Recent Regulatory Reform

How we can help

Financial Markets

White Collar Litigation

Short Selling – Recent Regulatory Reform https://hauzen.hk/wp-content/uploads/2020/12/stairs-feet-pikwizard-e56c51548444732f224d910d420e40f5_1401x788sm.jpg 1401 788 Hauzen Hauzen https://secure.gravatar.com/avatar/89f4c19e43caa7e0225dad1d9dad1fec?s=96&d=mm&r=g 15/01/2021 15/01/2021

Short Selling – Recent Regulatory Reform

Global practices with respect to selling regulations are considered in the context of Hong Kong which has taken a more stringent approach to reporting requirements, compared to UK, Australia & Singapore.

Short Position Reporting Regime https://hauzen.hk/wp-content/uploads/2020/12/stairs-feet-pikwizard-e56c51548444732f224d910d420e40f5_1401x788sm.jpg 1401 788 Hauzen Hauzen https://secure.gravatar.com/avatar/89f4c19e43caa7e0225dad1d9dad1fec?s=96&d=mm&r=g 15/01/2021 15/01/2021

Short Position Reporting Regime

The requirement to report short positions is examined in this practice note, with consideration of the background to the regime.

Short Selling Regulation https://hauzen.hk/wp-content/uploads/2020/12/stairs-feet-pikwizard-e56c51548444732f224d910d420e40f5_1401x788sm.jpg 1401 788 Hauzen Hauzen https://secure.gravatar.com/avatar/89f4c19e43caa7e0225dad1d9dad1fec?s=96&d=mm&r=g 15/01/2021 15/01/2021

Short Selling Regulation

This practice note provides the framework and restrictions for conducting short-selling lawfully under Part VII of the Securities and Futures Ordinance (Cap 571).

Different Types of Short Selling https://hauzen.hk/wp-content/uploads/2020/12/stairs-feet-pikwizard-e56c51548444732f224d910d420e40f5_1401x788sm.jpg 1401 788 Hauzen Hauzen https://secure.gravatar.com/avatar/89f4c19e43caa7e0225dad1d9dad1fec?s=96&d=mm&r=g 15/01/2021 15/01/2021

Different Types of Short Selling

Variants of short selling are considered including an introduction to ‘naked’ and ‘covered’ short sales. This section also sets out the dangers of short selling in the context of rights issues.

Introduction to Short Selling https://hauzen.hk/wp-content/uploads/2020/12/stairs-feet-pikwizard-e56c51548444732f224d910d420e40f5_1401x788sm.jpg 1401 788 Hauzen Hauzen https://secure.gravatar.com/avatar/89f4c19e43caa7e0225dad1d9dad1fec?s=96&d=mm&r=g 15/01/2021 15/01/2021

Introduction to Short Selling

This overview of short selling includes its definition, its operation, and how the practice is seen by regulators to be prone to market abuse.