List of stocks for short sales cut by over 100
The stock exchange's ruling council has cut the list of stocks available for short selling from 325 to about 200, exchange sources say.
The move is one of the 30-point measures announced by the Government last month in a bid to strengthen the securities market to curb speculators.
A stock exchange council member said the exchange had finished reviewing the list of stocks allowed for short selling, and that the revised list had been cut down by more than 100 stocks.
Securities and Futures Commission executive director David White said the commission was waiting for the exchange to submit its revised list for approval. It will be implemented after approval is given.
Mr White said: 'The purpose of the review of the short-selling stocks list is to be complementary to the Government's measures to tighten up the regulations on short selling.' The stock exchange has also restored the uptick rule which will ban short-selling activity during a falling market.
An exchange source said the 33 Hang Seng Index constituent stocks and stocks which have issued warrants will remain on the short-selling list to allow market players to carry out hedging.
Stocks to be removed will be those with low turnover or in which there is a lack of short-selling interest.
'The revised list will only allow high liquidity stocks for short selling,' he said. 'Some of the stocks have have seen their share prices fall and no longer fulfil the market capitalisation requirements to be a short-selling stock.'
