HSBC rights shares are expected to make a volatile trading start in Hong Kong today as investors who do not want to take up the offering are likely to sell the rights at an early stage. Brokers expected the HSBC rights shares, which will be traded from today until March 31, to open at a price as high as HK$13, similar to the grey market trading in Hong Kong last Friday. 'For investors who do not want to take up the rights issue, they will usually sell the rights in the market as early as possible,' said Louis Tse Ming-kwong, a director of VC Brokerage. 'As a result, we will expect to see a high volume of selling orders by retail investors, while fund managers or institutional investors who want to take up more rights are likely to be the buyers.' HSBC rights began trading last Friday in London after securing approval from shareholders for its US$17.7 billion rights issue on Thursday. The rights rose as much as 7.14 per cent above the opening price of 119 pence (HK$13.39) before declining to close at 110 pence. Ben Kwong Man-bun, the chief operating director of KGI Asia, said both HSBC's shares and the rights would be volatile this week. Mr Kwong believes the rights could be traded as low as HK$10 today, while the ordinary shares may go down to about HK$38. 'The US market's decline on Friday would have a negative impact on the Hong Kong market. This will drive both HSBC shares and rights down,'' Mr Kwong said. HSBC's American depositary receipts in New York closed 5.98 per cent lower at US$26.23 on Friday, while the stock in Hong Kong finished 0.12 per cent down at HK$41.45. Today will be the first day of trading for Hong Kong after stock exchange officials suspended the controversial 10-minute closing auction on Friday. The exchange suspended the auction after HSBC shares plunged more than 12 per cent in the auction period on March 9. The Securities and Futures Commission is undertaking an investigation into any possible manipulation. The previous market-closing system using the middle figure of the last five orders will return. An exchange spokesman said market rehearsals had shown brokers were ready to use the old system again. The exchange would monitor the market's close daily and would report any irregularity to the SFC. Legislator Chim Pui-chung, who does not own any HSBC shares, said he would take a wait-and-see approach to decide if he would buy the rights as a proxy to trade the stocks. 'It looks pretty cheap at the moment but the market will be very volatile this week. I'd like to keep my cash in my pocket at the moment but if the stock and rights go down further, I may consider buying.'