Shenzhen bourse looking at introducing short selling, says official
- The Shenzhen Stock Exchange, the smaller of China's two bourses, is considering introducing short selling in the market, officials from the stock exchange said.
""We have been studying the feasibility of adopting short selling on the Shenzhen bourse for quite some time,"" Kong Xiang, deputy head of the research institute under the Shenzhen Stock Exchange, told reporters on the sidelines of a financial service forum in Beijing.
China's current Securities Law, drafted during the Asian financial crisis, bans short selling to prevent undue speculative activity on the stock markets.
However, the rigid rule was blamed for recent deviations in stocks' true values, fueling speculative activity in money-losing companies, especially special treatment shares.
""It leaves traders very shorthanded when short selling is not allowed. Investors can only buy low first and sell high later to seek returns. They cannot short sell stocks even if they know they are overvalued,"" an analyst at Xinjiang Securities said, preferring not to be named.
Kong also said they are studying the introduction of a ""market maker system"", such as the one the NASDAQ is using, where several big institutions act as market makers to accept bids and solicit investor trades.
Asked to comment on the recent performance of the first batch of new stocks on the board for small and medium sized enterprises (SMEs), Kong said that they set a benchmark for investors to price stocks that are going to list.
Most of the initial eight stocks that listed on Shenzhen's second board rose more than 100 pct during their debut, with Han's Laser Technology Co Ltd (SZA 002008) up more than 300 pct. But most fell within their daily limit of 10 pct two days later.
Going forward, Kong said the Shenzhen bourse will probably attract Hong Kong and Taiwan SMEs to list on the second board, which will hopefully cooperate with the GEM board in Hong Kong.
深交所拟引进沽空机制
深圳证券交易所的一位人士称, 深交所正在考虑引进抛空机制, 已对此事的可行性进行了相当一段时间的研究。
中国目前的证券法规禁止投资者沽空。
他又表示, 深交所以后可能会吸引香港和台湾中小企业在中小企业板上市, 也希望能和香港创业板合作。
他又称, 深交所亦研究引进类似美国纳期达克市场的庄家制
