Short-Selling, Puts & Inverse ETFs 02 (Feb 12 - Dec 25)

[winston]

A-share short-selling on the way

Short selling of A-shares may be possible by March at the earliest under the mutual market trading scheme with the mainland.

Hong Kong Exchanges and Clearing (0388) is to test the system on January 26 to allow short selling of about 500 A-shares available for trading under the Shanghai-Hong Kong Stock Connect.

Under the current system, if A-shares investors want to sell the stock, they must hold at least the equal amount of shares in their own trading account before 7.45am on the transaction day.

The enhancement is to build a tracking system which could locate where the shares are held apart from the investor's account for instance, those stored with custodians instead of brokers. The northbound trading rule also sets certain restrictions for Hong Kong investors; for example, the short selling ratio in each transaction day is capped at 1 percent, with no more than 5 percent of short selling in 10 consecutive trading days.

Some analysts said the limitations are stricter than those in Hong Kong, and would prove sufficient to deter short sellers from attacking individual A-shares.

Source: The Standard HK

[winston]

HKEX (00388.HK) reportedly about to test A-share short selling

Local brokers have been notified by HKEX (00388.HK) that it will test the A-share short-selling function under the Shanghai-Hong Kong Stock Connect on 10 January, Ming Pao reported.

HKEx spokesman noted that if the test goes well, it would launch the offshore A-share short selling function as soon as possible so as to help institutional investors manage the risk and have more flexibility in the participation in the A-share market. ~


Source: AAStocks Financial News

[winston]

Short Sellers Now Taking Aim at Emerging-Market Bonds

http://www.bloomberg.com/news/2015-01-1 ... bonds.html

[winston]

Short selling green-lighted

Short selling of A shares through the Shanghai Hong Kong Stock Connect will be permitted from next month, the Hong Kong Exchanges and Clearings (0388) informed local brokerages yesterday.

HKEx said it will start simulating short selling A shares from Saturday and announce the exact launch date after getting approval of securities regulators.

Requirements will be stringent. The daily amount of shares to be shorted must not surpass 1 percent of the company's total shares in circulation, and the accumulated shares shorted in 10 days should not surpass 5 percent of the total shares.

The Shanghai Stock Exchange will halt the shorting activities when the short position makes up 25 percent of the shares in circulation.

Additionally, HKEx will require local brokerage firms to submit short-selling reports weekly, and it will set a price ceiling to prevent unreasonable selling prices.

"Hong Kong investors may not be interested in short selling A shares now, as the A-share market has not reached its peak of approximately 4,000 to 5,000," Fulbright Securities research director Kingston Lin King-ham said. He said the new function will not affect the volatility and turnover of A-share trading.

Amicus Asset Management director Conita Hung Lai-ping said local retail investors did not have a appetite for trading A shares as they are unfamiliar with the mainland market. So, few may take part in the short selling activities at the initial stage, she said.

Liu Jingjin, Goldman Sachs China chief strategist, said the new service will hardly affect market atmosphere or volatility at the start. But the short-selling quota made up a very low portion of the A-share market, accompanied by strict limitations and supervision.

Liu expects 400 billion yuan (HK$496 billion) to be channeled from the property sector into equities. Also, an interest rate cut by the central bank in the first half will help push A-share valuations up 20 percent.

Source: The Standard HK

[winston]

30 Stocks Trading Are Shorting Like Crazy

By Akin Oyedele

Source: Business Insider

http://www.thetradingreport.com/2015/02 ... ike-crazy/

[winston]

Goldman Sachs: These Are the Stocks You Might Want to Short

http://www.bloomberg.com/news/articles/ ... =BBD041415

[winston]

If the Stock Market Crashes, These Four Investments Will Put You on Easy Street

By Shah Gilani

http://www.wallstreetinsightsandindictm ... /#deeplink

[winston]

‘Safe’ Stocks to Buy: ProShares Short S&P 500 ETF (SH)

Although it’s the only ETF to make our list of safe stocks to buy should stocks suffer a correction, the ProShares Short S&P 500 ETF (NYSEARCA:SH) isn’t the only way to effectively short the market by going long on a fund. It’s just the best-known one.

There are plenty of other choices, man of which are also leveraged (meaning they rise even faster than the market falls).

That said …

While SH gains in value when the market implodes, inverse ETFs aren’t for the faint of heart or for people who can’t keep close (read “daily”) tabs on their positions.

While owning an individual stock gives you a reasonable chance to do well regardless of what the market does, with an inverse ETF like the ProShares Short S&P 500 ETF, you have to be right or you have to be out fast.

Source: Investor Place

[winston]

4 ‘Plunge Protection’ Trades for a Market Correction

You don't have to lose money when the market pulls back

By Johnson Research Group

http://investorplace.com/2015/05/4-plun ... WjqhtKqqko

[winston]

4 Ways to Play a Stock Market Breakdown

Stocks are finally starting to feel the burden of the eurozone's tumult and America's less-than-stellar economic situation

By Anthony Mirhaydari

Source: InvestorPlace

http://investorplace.com/2015/06/stock- ... XI8utKqqko