Photographer: Lam Yik Fei/Bloomberg

Hong Kong’s Surge in Short Selling Foreshadows Rebound: Chart

Bears can be good news for Hong Kong stocks, history suggests. The Hang Seng Index has tended to rebound after the ratio of short sales to total turnover climbs, with three peaks over the past five years preceding gains of at least 19 percent. After short-selling accounted for the biggest slice of transactions since at least 1998 this week, Bocom International Holdings Co. said Wednesday’s 2.7 percent jump was partly down to investors covering bearish bets.

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