5 Jan 2011: China to facilitate short selling

INDICES POINTS CHANGE
FTSE 100 5636 Down 58bp
S&P 500 1277 Flat
NIFTY 50 India 4749 Flat

Major Stories

  • China to bolster short-selling
    • China all set to spur the hedge-fund industry in the country by facilitating short-selling; this will be done through Central Securities Lending Exchange in Beijing
    • While this practice leads to higher volatility in the market, it also improves liquidity, which China are looking to achieve after their Composite Index fell 22% last year
    • This Central Exchange will lend shares to qualified investors for a fee; these shares will be sourced from institutions such as banks, insurers, and fund managers
  • Spain ‘expects’ banks to set aside Euro 50bn
    • Spain says banks need to set aside Euro 50bn for bad property assets; economic minister says it is essential for banks to ‘clean up’ without putting pressure on treasury
    • This system will see smaller banks, unable to finance their non-performing assets, get absorbed by bigger banks
    • Govt strictly says that banks will not be bailed out by the centre
  • Kodak develops plans for bankruptcy
    • Kodak has initiated its planning for bankruptcy even as it pursues asset sales to raise cash
    • Kodak has started talks with banks to make provisions for the company to trade while it reorganises its finances
    • The shares fell 28% after this news; the share price is now a tenth of what it was last year
    • Kodak is looking to sell its portfolio of more than 1000 patents
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2 thoughts on “5 Jan 2011: China to facilitate short selling

  1. pendants deals
    Hiya! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My website looks weird when browsing from my iphone 4. I’m trying to find a theme or plugin that might be able to resolve this issue. If you have any suggestions, please share. With thanks! pendants deals

    • unfortunately, i’m not very sure about this. i can try reducing the amount of graphics on my webpage, and that’s probably the only solution i can think of- the reason for the ‘wierdness’ is definitely down to the bullet-formatting on MS Word which is not supported on iphone

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