The news on investors’ minds today, including those managing Oasis Management Hong Kong, is what will be the consequence of the Chinese plan to introduce a new way to make it more convenient for investors to short-sell locally traded equities.
Chinese regulators are determined to help bring its markets to a place more in line with standards which are in place all over the world. The hope is that the move to make short-selling easier will help stimulate the hedge fund industry in China.
In order to achieve its goals Chinese leaders in Beijing plan to start a group called the Centralized Securities Lending Exchange, which they hope will be in place by the end of March this year, which will act as a platform for short-selling activities.
According to a report, China’s market regulator, the China Securities Regulatory Commission, will be the largest shareholder in the new exchange.