What is short position declaration? Is it necessary to declare? How to declare?

1. What is short position declaration?

According to "The Securities and Futures (Short Position Reporting) Rules" (rules) (rules 397 (1) and (2) of Chapter 571) of Securities & Futures Commission of Hong Kong (SFC), market participants are required to declare short positions of securities specified by the The Stock Exchange of Hong Kong Ltd. (SEHK).

"The Securities and Futures (Short Position Reporting) Rules"


2. Declaration rules

2.1 Declaration rules

A person whose net value of short position is equal to or higher than the limit at the end of the last trading day of any week shall continue to make a declaration until the net value of short position falls below the limit.

Calculation method of net value of short position: (short position - long position) * closing price. The limit shall be judged according to the type of stock:

If the stock type is an equity security, the limit is the lower of $30000000 and 0.02% * closing price * the total number of shares

 If the stock type is a fund, the limit is $30000000

To determine the stock type, please click here and refer to the latest version of the CSV file.

2.2 Declaration time

The reporting time shall be within 2 business days after the specified date. For example, short positions that have to be declared are due on Friday, and they must be declared at or before midnight next Tuesday (Hong Kong time).

2.3 Emergency

Please refer to the rules. In case of emergency, short positions must be declared on or before the next business day.


3. Declaration steps

3.1 Register to obtain the short position declaration number (if there is already a "short position declaration number", this step can be skipped)

Click here to jump to registration website.

3.2. Receive the registration confirmation information that appears on the screen

3.3. Check the mail to complete the registration procedure

3.4. According to the "short position declaration form", upload the CSV file and report the short position

Click here to jump to the declaration website.

3.5 Receiving notification of confirmation information

Please refer to the "short position declaration service - User Guide" for specific declaration steps.


4. File format and technical specifications to apply for the model of CSV

The name of the CSV file must start with the date of "declaration date" in the format of "yyyymmdd" and end with "CSV". 

Note: For specific instructions for filling in the form, please refer to "Notes to the Reportable Short Position Form" and "The Short Position Declaration Service - User Guide" (Appendix: file format and technical specifications of the CSV template).


5. Disclaimer

5.1. If the "Short Position Declaration" of the help center is updated, Futu securities will not inform you. Futu has no responsibility for any form of loss.

5.2. Futu will send a notice to the customer after monitoring that the customer meets the declaration conditions. This notice is the auxiliary service provided by Futu, not Futu's responsibility.

5.3. Futu provides this information for the convenience of customers. It does not guarantee the absolute accuracy or completeness of the information. These rules may be changed subsequently. Investors holding a large number of short positions should be subject to the latest provisions of the SFC website.


6. Consequences of non-declaration

In accordance with section 398 (6), cap. 571 of the "Securities and Futures (crimes and penalties) regulation", any person who violates the short position reporting rule is liable to criminal liability in accordance with the law.

For more information, click here to learn more about the short position declaration.