Hong Kong's new compulsory stock borrowing programme

Abstract

The paper discusses the main features of Hongkong Clearing's new ‘compulsory’ stock borrowing programme, the reasons behind its implementation, the risk exposure of lenders and the borrower (ie Hongkong Clearing), and problems associated with the lack of collateral for loaned stocks and possible solutions.

Citation

Bai, L. (2000), "Hong Kong's new compulsory stock borrowing programme", Journal of Financial Regulation and Compliance, Vol. 8 No. 1, pp. 57-66. https://doi.org/10.1108/eb025030