Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Shanghai/Shenzhen Connect: Holdings From the Wuhan Lockdown, The Market Low, Until Now

Quiddity Advisors

Event-Driven

Since August 2012, reportable net short positions in Hong Kong at the end of each week are filed with the SFC confidentially and are <a href="https://www.sfc.hk/web/EN/regulatory-functions/market-infrastructure-and-trading/short-position-reporting/aggregated-short-positions-of-specified-shares.html" target="_blank" rel="noopener">published one week</a> after the submission - typically Friday afternoon.
Under the <a href="https://www.hklii.hk/eng/hk/legis/reg/571AJ/" target="_blank" rel="noopener">Securities and Futures (Short Position Reporting) Rules</a>, an investor who, on the last business day of each week, holds a net short position of 0.02% of the "specified shares", or HK$30mn (whichever is lower), is required to report his net short position to the SFC within 2 business days.
The HKEx provides a <a href="https://www.hkex.com.hk/Services/Trading/Securities/Securities-Lists/Designated-Securities-Eligible-for-Short-Selling?sc_lang=en" target="_blank" rel="noopener">list</a> of designated securities eligible for short selling. Since Mar 2017, all stocks are covered, not just stocks in the Hang Seng Index or the Hang Seng China Enterprises Index, as it was previously.
There is a lot of unnecessary noise in these weekly reports on account of the low threshold - just how meaningful is the HK$60mn short in China Mobile with a market cap of HK$1.15tn? Not much.
But I thought it would be useful exercise to see how shorts behaved in 2020, using specific notable points in time as reference points (at the time of the lockdown in Wuhan (23 Jan), the low of stock markets in late March) against where we are now.
As always, more below the fold.

Since August 2012, reportable net short positions in Hong Kong at the end of each week are filed with the SFC confidentially and are published one week after the submission - typically Friday afternoon.
Under the Securities and Futures (Short Position Reporting) Rules, an investor who, on the last business day of each week, holds a net short position of 0.02% of the "specified shares", or HK$30mn (whichever is lower), is required to report his net short position to the SFC within 2 business days.
The HKEx provides a list of designated securities eligible for short selling. Since Mar 2017, all stocks are covered, not just stocks in the Hang Seng Index or the Hang Seng China Enterprises Index, as it was previously.
There is a lot of unnecessary noise in these weekly reports on account of the low threshold - just how meaningful is the HK$60mn short in China Mobile with a market cap of HK$1.15tn? Not much.
But I thought it would be useful exercise to see how shorts behaved in 2020, using specific notable points in time as reference points (at the time of the lockdown in Wuhan (23 Jan), the low of stock markets in late March) against where we are now.
As always, more below the fold.

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)

Cosco Shipping Energy Transportation Co. Ltd. (H)

Hong Kong' Short Interest: From the Wuhan Lockdown, The Market Low, Until Now

Alibaba Group Holding

Hong Kong' Short Interest: From the Wuhan Lockdown, The Market Low, Until Now