Short selling activity in Hong Kong has dropped to its lowest level since April 2021 due to Chinese government stimulus measures that have boosted the local stock market.
Recent data shows that short positions accounted for only 9.7% of the market's total turnover on Friday, indicating a significant decrease in bearish sentiment among investors.
Although the short selling ratio slightly recovered to 10.7% on Monday, overall activity remains subdued as market participants respond positively to China's economic signals.
This shift in investor confidence suggests that the stimulus measures are strengthening market performance and reducing interest in short positions.