The stock exchange's hopes to increase the number of stocks available for short selling by the end of this month have been dashed because the Securities and Futures Commission (SFC) expects to discuss the proposal next month. The exchange is seeking to introduce short selling in the 23 H shares, which make up the Hang Seng China Enterprises Index, and in stocks with derivative warrants. Newly listed companies which are among the top 50 largest companies by market value will qualify automatically for short selling under the plan. The exchange planned to implement the scheme later this month, with approval from the SFC. However, SFC executive director David White said the commission had just received the proposal and would not have enough time to study it before its committee meeting on Monday. He said the commission would consider the case at next month's meeting. Mr White said the SFC was concerned about the liquidity of stocks available for short selling. 'We need to make sure stocks on the expanded short-selling list are all liquid stocks,' he said. 'The SFC will need to assess the liquidity of the H shares and the stocks with warrants.'