Short-selling

The trade war is still in its infancy, so there is plenty of time for the short bets to come good

They had lost US$2.5 billion in July as of last Thursday, betting against the 50 US-listed stocks with the highest short interest

Tesla’s shares fell 7.5% at US$291.50, having lost more than 21% so far this year

Why this worry about an activity that is routine and commonplace in the currency, futures and commodities markets?

Short sellers borrow shares they expect to fall, aiming to repay the loan for less later to pocket the difference

The curbs are meant to mitigate potential volatility and provide investors with an opportunity to assess their response to the US tariff barrage

The move could improve market access as it is likely to progress the country’s bid to be upgraded from emerging to developed-market status

Tesla’s share price is now down more than 40% since the end of December, equivalent to about US$550 billion of lost market value

THAILAND’S stock exchange will tighten curbs on short selling and high-frequency trading as it attempts to revive investor confidence in the world’s worst performing equity market.