Hong Kong shorting gets pricey
06 September 2012 London
Image: Shutterstock
Markit Securities 麻豆影视传媒 has released a report that indicated the high cost of short selling in Hong Kong.
In a blog post, Will Duff Gordon, research director at Markit, said: 鈥淚f you thought, like me, that the cost of short selling in Hong Kong could not get any higher since a year ago then you are wrong.
鈥淎dmittedly, this rise in the cost of borrowing plateaued over the last few months but this was after a continued rise for nine consecutive months as the chart below shows.鈥�
He stated that the number of shares on loan in Hong Kong for more than 500 basis points have increased from 13 percent of securities to 21 percent, compared to just 2 percent in Japan.
In a blog post, Will Duff Gordon, research director at Markit, said: 鈥淚f you thought, like me, that the cost of short selling in Hong Kong could not get any higher since a year ago then you are wrong.
鈥淎dmittedly, this rise in the cost of borrowing plateaued over the last few months but this was after a continued rise for nine consecutive months as the chart below shows.鈥�
He stated that the number of shares on loan in Hong Kong for more than 500 basis points have increased from 13 percent of securities to 21 percent, compared to just 2 percent in Japan.
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