Securities and Futures (Short Position Reporting) Rules
(Cap. 571, section 397(1) and (2))
(Enacting provision omitted—E.R. 2 of 2012)
[18 June 2012]
(Omitted as spent—E.R. 1 of 2013)
In these Rules—
daily reporting requirement notice (每日申報規定公告) means a notice published under rule 7(1); reportable short position (須申報淡倉) has the meaning given by rule 3; reporting day (申報日) means— (a)unless paragraph (b) applies, the day specified in rule 4(1); or (b)if a daily reporting requirement notice is in force, the day specified in rule 4(3); reporting deadline (申報期限) means— (a)unless paragraph (b) applies, the period specified in rule 4(2); or (b)if a daily reporting requirement notice is in force, the period specified in rule 4(4); specified ATS (指明自動化交易服務) means an authorized automated trading services specified in Schedule 2; specified shares (指明股份) means shares in a corporation, or interests in a collective investment scheme (whether or not the interests are shares in a corporation), which are listed or admitted to trading on the Stock Exchange and specified in Schedule 1; (L.N. 39 of 2016) Stock Exchange (證券交易所) means the recognized stock market operated by the Stock Exchange Company.In these Rules, a person has a reportable short position—
in any specified shares, except specified shares which are interests in a collective investment scheme, if the person has a net short position value in the specified shares that is equal to or more than the threshold specified in subrule (2)(b); or
in any specified shares which are interests in a collective investment scheme, if the person has a net short position value in the specified shares that is equal to or more than the threshold specified in subrule (2)(ba). (L.N. 39 of 2016)
For the purposes of this rule—
the net short position value that a person has in any specified shares is calculated in accordance with the following formula—
(A – B) × C
Where—
| A | is the number of the specified shares in the person’s short position; |
| B | is the number of the specified shares in the person’s long position; |
| C | is the specified closing price of the specified shares; |
in subrule (1)(a), the threshold in relation to a reporting day is the lower of— (L.N. 39 of 2016)
$30 million; and
0.02% of the value of the total number of the specified shares issued by the corporation concerned, calculated in accordance with the following formula—
C × D
Where—
| C | is the specified closing price of the specified shares; |
| D | is the total number of the specified shares issued by the corporation, as at the close of trading on the Stock Exchange on the reporting day; |
in subrule (1)(b), the threshold in relation to a reporting day is $30 million; (L.N. 39 of 2016)
in paragraphs (a) and (b), specified closing price, in relation to any specified shares, is, subject to paragraph (d)— (L.N. 39 of 2016)
the closing price of the specified shares on the reporting day; or
if on the reporting day the specified shares are suspended from trading on the Stock Exchange, the last closing price of the specified shares before the suspension,
as determined in accordance with the rules of the Stock Exchange Company; (L.N. 39 of 2016)
if, in relation to any specified shares, the closing price referred to in paragraph (c)(i) or (ii) is expressed in a currency other than Hong Kong dollars, the closing price is taken to be its equivalent in Hong Kong dollars on the reporting day, calculated using the rate of exchange for the currency that is the buying rate for telegraphic transfers at the commencement of business on the reporting day, as determined by the Monetary Authority. (L.N. 39 of 2016)
In this rule—
long position (好倉), in relation to any specified shares, means the number of the specified shares that a person beneficially owns; short position (淡倉), in relation to any specified shares, means the position in the specified shares that a person has as a result of selling the specified shares at or through the Stock Exchange or by means of any one or more specified ATS, or any combination of these methods of selling, where—(a)at the time of each sale comprised in the position, the person did not have a presently exercisable and unconditional right to vest the specified shares in the purchaser; or(b)each sale comprised in the position was the subject of a short selling order.Unless a daily reporting requirement notice is in force, subrule (2) applies to a person who has a reportable short position in any specified shares at the close of trading on the Stock Exchange on—
the Friday of any week; or
if the Stock Exchange does not open for trading on the Friday of any week, the last weekday before Friday on which the Stock Exchange is open for trading.
A person to whom this subrule applies must notify the Commission of the reportable short position within 2 business days after the day specified in subrule (1) in accordance with this rule and rule 4A. (L.N. 39 of 2016)
If a daily reporting requirement notice is in force, subrule (4) applies to a person who has a reportable short position in any specified shares to which the notice relates at the close of trading on the Stock Exchange on each day on which the Stock Exchange is open for trading. (L.N. 39 of 2016)
A person to whom this subrule applies must notify the Commission of the reportable short position within 1 business day after the day specified in subrule (3) in accordance with this rule and rule 4A. (L.N. 39 of 2016)
If a reportable short position in any specified shares is held on trust, the duty to notify under subrule (2) or (4) does not apply to a beneficiary of the trust and instead applies to the person who is the trustee of the trust as if that person were the beneficiary.
In determining whether a corporation has a reportable short position in any specified shares—
the short position and the long position (if any) in the specified shares attributable to a particular collective investment scheme; and
those attributable to another collective investment scheme,
are to be treated separately and not to be aggregated.
In determining whether a person has a reportable short position in any specified shares—
the short position and the long position (if any) in the specified shares attributable to any partnership; and
those attributable to another partnership,
are to be treated separately and not to be aggregated.
If the partners in a partnership have a reportable short position in any specified shares attributable to the partnership, those partners are regarded as having complied with the duty to notify under subrule (2) or (4) in respect of those specified shares if one of those partners or another person authorized by all those partners has submitted, on behalf of those partners, a notice that complies with rule 4A. (L.N. 39 of 2016)
(Repealed L.N. 39 of 2016)
Notification to the Commission required under rule 4(2) or (4)—
must contain—
particulars identifying the person who has a reportable short position in specified shares;
particulars of the net short position value and number of specified shares comprised in the reportable short position; and
the name and stock code of the specified shares comprised in the reportable short position; and
is to be regarded as duly submitted only if it is submitted—
by means of an electronic system designated by the Commission under rule 5(1); and
in accordance with the directions and instructions relating to the system referred to in rule 5(2).
The Commission may, for the purposes of these Rules, designate one or more electronic systems.
Where the Commission designates an electronic system under subrule (1), it must as soon as reasonably practicable publish, in the manner it considers appropriate, directions and instructions relating to the use of, and the submission of notifications under rule 4(2) or (4) by means of, that system.
Subject to subrules (2) and (3), the Commission must, as soon as reasonably practicable after the reporting deadline for a reporting day, publish in the manner that it considers appropriate the particulars of the reportable short positions notified to it in respect of the reporting day under rule 4(2) or (4) that it considers appropriate.
Subrule (1) does not require the Commission to publish particulars—
earlier than 5 business days after the reporting day; or
if a daily reporting requirement notice is in force, more frequently than once a week.
Any particulars published under subrule (1) must be, so far as reasonably practicable, presented in a way which prevents the identity of a person who has submitted a notice under rule 4(2) or (4) and that person’s reportable short position from being ascertained from it.
The Commission may publish a daily reporting requirement notice in accordance with this rule if the Commission believes that—
circumstances exist, in Hong Kong or elsewhere, which threaten or may threaten the financial stability of Hong Kong; and
as a result of those circumstances, the Commission needs to be notified of reportable short positions on a daily basis.
A daily reporting requirement notice—
must declare that, from the date specified in the notice, a person who has a reportable short position on each day on which the Stock Exchange is open for trading must notify the Commission of the reportable short position within 1 business day;
must identify the specified shares to which the notice relates; (L.N. 39 of 2016)
must be published in the Gazette at least 24 hours before the date specified in the notice; and
may be published or announced on the Commission’s website and in any other manner and at the times that the Commission considers appropriate.
Neither a daily reporting requirement notice nor a cessation notice is subsidiary legislation.
Shares, or interests in a collective investment scheme, which are determined by the Stock Exchange Company to be a “designated security” in accordance with the rules of the Stock Exchange Company.
(Schedule 1 replaced L.N. 39 of 2016)