The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announces that with effect from Monday, 3 December 2001, 17 additional securities will be eligible for short selling and 85 existing Designated Securities will be removed from the list. The total number of Designated Securities for short selling will be 156.
The revision was made in accordance with the revised selection criteria of Designated Securities for short selling, which were incorporated in the Eleventh Schedule of the Rules of the Exchange.
The rule amendment was made with reference to the recent reshuffles of the indices managed by HSI Services Ltd, and to include stocks with a certain level of market capitalisation and an annual turnover.
The revised selection criteria state that a security may be designated by the Stock Exchange as Designated Security if it falls within or is otherwise included in any one or more of the following categories:
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all constituent stocks of indices which are the underlying indices of equity index products traded on the Exchange;
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all constituent stocks of indices which are the underlying indices of equity index products traded on Hong Kong Futures Exchange Limited;
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all underlying stocks of stock options traded on the Exchange;
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all underlying stocks of Stock Futures Contracts (as defined in the rules, regulations and procedures of Hong Kong Futures Exchange Limited) traded on Hong Kong Futures Exchange Limited;
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stocks that meet the minimum liquidity requirement for the issuance of basket derivative warrants (i.e. market capitalisation of public float of not less than HK$1 billion, being maintained for the 60 days qualifying period);
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stocks with market capitalisation of not less than HK$1 billion and an annual turnover to market capitalisation ratio of not less than 40%;
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Tracker Fund of Hong Kong and other Exchange Traded Funds approved by the Board in consultation with the Commission; and
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all securities traded under the Pilot Programme.
A list of the Designated Securities to be added and removed is attached. The revised selection criteria of Designated Securities for short selling and the revised list of Designated Securities are available on the HKEx website (http://www.hkex.com.hk).
List of 17 Additional Designated Securities