Closer monitoring for short selling

Rules providing for a new short position reporting regime will be gazetted on March 23.

The Financial Services & the Treasury Bureau said the announcement will be about the Securities & Futures (Short Position Reporting) Rules and the Securities & Futures (Offences & Penalties) (Amendment) Regulation 2012.

The new short position reporting requirements will be effective from June 18.

The bureau said the introduction of the regime will enhance the commission's ability to monitor short selling activities. It said the new regulations will be conducive to maintaining financial stability in Hong Kong.

The regulations provide for the offences and penalties under the new regime.

The rules provide for a new short position reporting regime under which people who have reportable short positions in specified shares are required to tell the Securities & Futures Commission.