Oops, we missed it! And look out below Monday morning! Many local Hong Kong newspapers, including the main English daily, completely missed or greatly underplayed a major finance story on Friday. The Shanghai and Shenzhen stock exchanges announced that fund managers could loan shares, thus greatly easing investor difficulties in short selling. Policy makers also banned the margin-trading businesses of brokerages from using so-called umbrella trusts. The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (wow, a mouthful) tumbled 5 percent. Stocks on Wall Street and in Europe were sold down aggressively, in part due to the announcement. A betting man would predict a lot of selling pressure on Monday morning in Hong Kong and Shanghai. From my perch, though, it might seem an opportunity. Short selling hasn't stopped major indices on Wall Street or the Dax in Germany from setting recent all-time highs. But mainland retail investors can be emotional. Can't wait for Monday morning.
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