The Long and Short of It

Improving Short Selling Disclosure in Hong Kong SAR

Short sellers have arguably replaced sovereign wealth funds, who in turn replaced private equity, as the cause célèbre amongst business commentators. Developments in the United Kingdom and United States this year have once again put short sellers in focus. Within Asia, short selling has long attracted attention, having leapt to prominence during the Asian Financial Crisis. The events of 1997 brought strong criticism of short-sellers from governments and regulators in the region, some of whom temporarily banned short selling and put in place stiff penalties. Whilst the Asian tiger economies recovered from the 1997 crisis, the recent downturn in markets has led to more anxiety about short selling.