Activism

Wither short selling in Hong Kong?

Hong Kong’s stock market is becoming increasingly immune to short-seller attacks. Listed companies are better prepared and the regulator is also keeping a close eye.

Short sellers in Hong Kong have a long track record of shaking up share prices to make short-term profits. But their influence is waning.

US short seller Muddy Waters is the latest to have fallen short of its own expectations when it launched a series of attacks on mainland sportswear retailer Anta Sports.

On July 7, the short seller published a report accusing the company of using numerous secretly controlled distributors to fraudulently boost its margins. This caused a 7% drop in the Hong Kong-listed company's share price before trading was suspended midday.

Over the next 10 trading days, Muddy Waters followed up with...

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