Heavy Closing Auction Session Activity Coincides with Index Balancing
Statistics
30 May 2008
Hong Kong Exchanges and Clearing Limited (HKEx) noted fluctuation in closing prices of certain stocks compared to the continuous trading session today (Friday). HKEx also noted that substantial turnover was recorded for these stocks in the Closing Auction Session.
HKEx noticed the activity coincided with MSCI Barra’s index rebalancing. MSCI Barra announced in the first half of this month changes in the composition of its indices effective “as of the close of 30 May”. HKEx understands that various investors which use MSCI Barra indices as performance indicators would have adjusted their portfolios today as the changes took effect.
HKEx said its Closing Auction Session operated as normal and market fluctuation around the time of an MSCI Barra rebalancing was not unusual.
HKEx monitors the market activity and will report any irregularities it may observe to the Securities and Futures Commission.