China Shorting Move Seen Opening Range Of Plays

China watchers are buzzing about the move to allow equity shorting, a major development that could ultimately open a number of trading strategies.

  • 14 Jul 2006
Email a colleague
Request a PDF

China watchers are buzzing about the move to allow equity shorting, a major development that could ultimately open a number of trading strategies. The China Securities Regulatory Commission has announced a short-selling trial period for local securities houses beginning next month. "This is clearly a positive step forward," said James Rodríguez de Castro, managing director in global equity markets at Merrill Lynch in Hong Kong.

Short selling will be limited to a handful of domestic houses for the trial but the mechanism will likely be extended to foreign qualified institutional investors, according to Winston Wenyan Ma, author of Investing in China-New Opportunities in a Transforming Stock Market, based in New York. He said offshore clients will be able to put on synthetic short positions through market-access products. "In the long term shorting will allow arbitrage traders to trade away price discrepancies among different markets for example, between the [onshore] A-share market and H-shares [in Hong Kong]," he said.

The trial will last several months and regulators are likely to keep a close eye on how soon firms can get to grips with executing the transactions.

Initial trades will at first be via private contracts, but market officials anticipate short positions will be standardized for the domestic stock exchanges. Market officials said a similar path was followed in recent years in China for bond repos whereby trading was first permitted between select interbank players for several months before further opening the market.

  • 14 Jul 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 23 May 2017
1 JPMorgan 8,714.26 35 8.36%
2 UBS 8,283.47 33 7.95%
3 Goldman Sachs 7,736.57 37 7.42%
4 Citi 6,897.11 46 6.62%
5 Bank of America Merrill Lynch 6,215.31 24 5.96%