The fact a recent short-selling restriction was lifted within a month points to a maturing market, although the exchange still faces an uphill battle with the regulator, say participants.
Partly delayed rules to allow short-selling on the Shanghai-Hong Kong link to boost trading from next week have been dismissed as unclear and a barrier to effective implementation.
Tapering has sparked both sell-offs and shorts among emerging market assets, with volatility expected to continue throughout the year.
Hong Kong’s SFC seeks to send a deterrent message to the market by banning a broker-dealer for three years for pretending his wife is a client on a short-selling order.
A strong regulatory response is required post-crisis û but not too strong, says Martin Wheatley, Hong Kong's top securities supervisor.
Iosco is consulting the industry on short selling in the areas of appropriate controls, reporting, compliance and enforcement systems, as well as possible exemptions.