Portable Alpha

China: Now That's Volatility

Looks like Beijing might have sussed out what short-selling might mean for the equity market in here.

China, Hong Kong May Review Short Selling to Boost Equities
www.bloomberg.com/apps...

Regardless a rumor or otherwise regarding the reported postponement, okaying margin trading represents another policy initiative that has two edges. If engaged properly, it might boost trading volume, nonetheless, speculative and predatory strategy could lead to significant ramifications for Chinese stock market which have already come under severe pressure.

Haitong's 3Q profits were down as volumes have been declining. Yet I'm skeptical if it would be a good idea to salvage the camp where Haitong and the likes are in, at the expenses of the more, don't think sectorish [or regional] utilitarianism would go with much sustainability and end up with positive outcome in the long run.