Wednesday, September 24, 2008

Short Selling in New Zealand?

A propos of yesterday's comments on short selling in New Zealand, it appears that neither the Australian newspaper nor the regulatory body ASIC are of the opinion that the practice is insignificant.

In a hurried decision yesterday, ASIC revealed covered shorts could be taken in dual-listed stocks such as BHP Billiton, Rio Tinto, ANZ Bank and Lion Nathan, as the stocks were at risk of being savagely shorted on their secondary exchanges in London and New Zealand.

This is in marked contrast to the points of view on Morning Report Monday. Not my bailiwick this issue, but it must be possible to find the truth one way or the other.

In general the ban on short selling seems to be attracting increasing criticism.

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