first, it is true that Hong Kong stocks can be shorted, but it is generally institutions, not individual investors, who short Hong Kong stocks. After all, individual investors are a vulnerable group in the stock market. If individual investors participate in short selling, the risk is considerable and they are prone to huge losses. Even for institutions, the risk of shorting is great.

2.

1. Short selling of Hong Kong stocks requires the amount of funds

There must be a deposit of 5, yuan in the account, and then it will be sold by the brokerage firm, and then it will be bought back and returned to the brokerage firm after the stock price falls. Borrowing tickets needs to support interest, and not all stocks can be shorted. Many stocks cannot be borrowed in the market, which is somewhat similar to margin financing and securities lending in the Mainland.

2. Uptick rule

When shorting stocks, it is forbidden to sell stocks at or below the previous transaction price.

according to the principle of escalation, the current transaction price is 1 yuan, and the short selling price must be higher than that of 1 yuan; When the previous transaction price has not changed but is higher than the previous transaction price, if the quotation of the latest transaction remains unchanged at 1.15 yuan, but the previous transaction price is 1 yuan, investors can short at 1.15 yuan. The principle of reporting up is to prevent short sellers from deliberately lowering the market price.

3. "naked short selling" of securities that have not been borrowed is strictly prohibited

naked short selling of Hong Kong stocks is not allowed, that is, direct short selling without securities is not allowed. In order to sell short, it is necessary to sell short, that is, investors must have corresponding stocks to borrow and sell short, even if a stock is allowed to sell short on the Hong Kong Stock Exchange. Because of "naked short selling", the number of securities may be inflated in a short time, which will cause great interference to market stability.

4. Limit the range of securities that can be sold short

Not every stock in Hong Kong stocks can be sold short. The HKEx will regularly update the list of designated securities that can be sold short. As of August 6, 22, a total of 869 stocks and ETFs were available for short selling. The market value and turnover of these targets have covered more than 9% of the whole market.

5. Screening mechanism and criteria for short-selling securities

1. Stock index futures options, some ETF funds and market-making securities traded on the exchange.

2. Stocks with a market value of not less than HK$ 3 billion and a turnover rate of not less than 6% in the past 12 months.

3. Stocks that have been newly listed for no more than 6 trading days, but the market value of public shares is not less than HK$ 2 billion and the total turnover is not less than HK$ 5 million in 2 consecutive trading days starting from the second day of listing.

To sum up, junk stocks and fairy stocks that have just been listed can't be sold short at will, and only those listed in the short-selling list can be sold short if they can borrow shares.

As for the method of shorting Hong Kong stocks, in addition to directly shorting stocks, there are also derivatives of stocks, such as put certificates and bear certificates, which are used for short trading.

A bull certificate is bullish and a bear certificate is bearish. They are all issued by investment institutions relying on a positive stock, and it will be cheaper to short the transaction by putting the bear certificate. Bull-bear certificate has its own leverage, and the income and risk range will be relatively large. Please pay attention to the risks.