Jurisdiction - Hong Kong
Reports and Analysis
Hong Kong – Revised FAQs For Short Position Reporting.

13 March, 2013


Legal News & Analysis – Asia Pacific – Hong Kong – Capital Markets


The Securities and Futures Commission (SFC) recently revised its FAQs on reporting obligations under Hong Kong’s Securities and Futures (Short Position Reporting) Rules. The Rules require weekly reporting of net short positions in certain Hong Kong listed shares above the applicable threshold, being the lower of (i) 0.02% of the relevant company’s issued share capital, and (ii) HK$30 million.


Among other things, the revised FAQs clarify that:


  • for dual listed shares, the obligation to report only arises for short positions resulting from the short sale of shares at or through the Stock Exchange of Hong Kong (SEHK) or by means of an authorized automated trading service specified in the Rules (none are specified currently);
  • the denominator to be used in calculating whether you exceed the 0.02% threshold excludes shares of the relevant company (such as China A shares) that are listed on exchanges other than the SEHK.


In addition, the SFC has indicated failure to meet a reporting deadline because it fell on a public holiday in the country where you are based will not be regarded as a reasonable excuse.




For further information, please contact:


Scott Carnachan, Deacons

[email protected]


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