Financial secretary: No need for short-sell ban

The government was not able to discover abnormalities in short-selling activities.

Secretary for Financial Services & the Treasury Professor KC Chan has dismissed calls to ban short selling, saying Hong Kong has the world’s strictest regulations on the practice.

Speaking to the media after an IPO launch ceremony Thursday, Prof Chan said the Government and the Securities & Futures Commission closely monitor short-selling activities and have seen no abnormalities. He said the commission will follow up if any irregularities are found, according to a government report.

He said banning short selling will not prevent market slumps, adding it is more important to closely monitor the trade.

As there are concerns over the European debt situation and the global economic recovery, he said volatility in the market is expected.