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A likely scenario is hedge funds have hastily complied a list if those companies potentially at risk from de-listing, shorting indiscriminately without researching or indeed understanding the underlying business itself.

This would explain why there is such a disproportionate amount of stock sold short to the free float.

As alluded to before, the shorts have a very active role here, it becomes obvious how any buying has been thwarted with short sales driving the price down to multi year lows, completely unrealistic and false imo.

This can be seen in some of the NASDAQ statistics below, 70 v 56

ACTIVE POSITIONS HOLDERS SHARES

Increased Positions 70 2,746,174
Decreased Positions 56 2,955,946

https://www.nasdaq.com/market-activity/stocks/hcm/institutional-holdings

That's a very good point on WPP being one of the rejected offers, everyone knows its in play so perhaps something similar happens along the lines of Homeserve.

The ST times stuff is getting silly (if it wasn't already. Last week it totally backfired and we are now 20% higher that where we started.

Market makers will look for any opportunity to drop this filling orders, the shares have to come from somewhere t fill those disappearing shorts.

..the game is afoot..

Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, this is the chap that made the comments last week so I am hopeful we hear something conclusive perhaps even this week.

The key appears to be the consultation period to listed to any objections, proposal first published on 2nd April so possibly a month for feedback?

Chances are Qube still have a position short on THG below threshold, being on the wrong side of the Homeserve bid is going to make them and others super jumpy, especially after THG board have confirmed such approaches.

I thought the quote from Homeserve highlighted by bob (other forum) very apt:

"They added: 'We can see the attraction of taking the business private and investing for growth behind closed doors, especially for founder, CEO and largest shareholder Richard Harpin.

'This would be a shame in our view but is reflective of the current way the UK market is valuing stocks - stocks that have opportunities to invest for long-term growth seem to get penalised, whilst those that buy back stock at high valuations get applauded."

Guess who got caught out on Homeserve bid..

https://shorttracker.co.uk/company/GB00BYYTFB60/

https://shorttracker.co.uk/company/GB00BMTV7393/

What is interesting about these updates in the frequency and tone, clearly the regulators are out not just to change the audit process but to go further attracting new capital inflows.

In order to do this they must provide a familiar framework where investors large and small feel comfortable, irony being is NASDAQ could (through HFCAA) have help to propel a foreign market to compete against its own.

"On one hand, continued efforts will be made to attract more foreign capital into the onshore stocks, futures and bond markets. More international leading financial institutions should be introduced to China to provide better services for investors."

http://www.chinadaily.com.cn/a/202204/22/WS62624f89a310fd2b29e58b0e.html

Shorts can't simply walk away, too big as a proportion of daily volume.

NASDAQ biotechs are definitely responding to HFCAA updates as currently up v broader trend of stocks down, also noticed UK quote jumped shortly after my post this morning.

Fully expected the share price to drop this morning based on US trading but HK seems to have propped it up.

Are you going to the AGM or dialling in?

Chinese regulator hopeful of agreement with US on audit issues

By SHI JING in Shanghai | chinadaily.com.cn | Updated: 2022-04-22 14:47

The cooperation and negotiation between the Chinese and US regulators over the audit issues for US-listed Chinese companies have been proceeding smoothly and a cooperative agreement can be achieved soon, said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission on Thursday night.

Amazon directly investing in this sector can do no harm, draws attention tot he importance of logistics and end end control over fulfilment, it also strengthens and validates THG's business model imo.

Regarding Times coverage, as before credentials do these journalists have in business, more importantly building one from scratch to nearing 3 billion in sales!

Amazon is launching a $1 billion fund that will back companies “of all stages” building supply chain, fulfillment and logistics technologies, the company announced Thursday.

The Amazon Industrial Innovation Fund will focus on new technologies that will “increase delivery speed and further improve the experience” of warehouse and logistics employees, Alex Ceballos Encarnacion, Amazon’s vice president of worldwide corporate development, wrote in a blog post.

https://www.cnbc.com/2022/04/21/amazon-launches-1-billion-fund-to-invest-in-warehouse-technologies.html

All good although short side can't simply walk away due to their collective size of bets v daily volume. Crest Loan data is a pretty good guide imo rather than the declared over 0.5% notifications, going to take a while to unwind this lot which means plenty of market maker ups/downs.

6.94% Mar-22
7.61% Feb-22
8.39% Jan-22

8.72% Dec-21
7.85% Nov-21
6.19% Oct-21
6.54% Sep-21
2.71% Aug-21
1.92% Jul-21

Interesting article CJ, by what seems a well informed journalist.

the commentary regarding shorts pushing home their positions I would be in agreement with, this tends to support the various stock on loan figures across the three exchanges (I think it was WB who coined the phrase
"guaranteed future buyers :))

Regarding HFCAA, this bit stood out:

"According to a Mainland media source from the Boao Forum, Fang Xinghai, Vice Chairman of the CSRC, said that the audit and supervision issues between China and the United States are the core, and some arrangements need to be made. It’s not easy to find a reasonable arrangement, but the teams of both sides have held discussions every week, and I believe this uncertainty will be eliminated soon. "

LOL, good call, if you have time could you ask regarding timescales of proposal as below, they may have a more direct contact than public emails.

Biotechs in general being smooshed on NASDAQ, might get my top up tomorrow.

There zero price correlation to anything, NASDAQ goes up HCM (sometimes) gores down, NASDAQ turns negative (as in today) HCM reverses fall.

Irregular patterns such as this suggest market makers have control over the book, those shorts need covering at some point.

What a great day!

Cheeky market makers in their flying machines, into the red no..wait a minute, up 20% lol

Lots to digest over the weekend but todays presentation was excellent imo, really first class with the investment case well articulated - well done Matt and the team!

I don't think management will have much to say on HFCAA without the proposed changes (link below) being ratified.

This is the email address I have used from CSRC web site to see how long the process takes, consult@csrc.gov.cn perhaps someone else could have a go.

Shanghai appears to have some exceptions on access/production

"The plant was closed for over two weeks because of local COVID-19 outbreaks. It has already resumed operation, with over 8,000 employees having returned to their post since Sunday."

http://www.chinadaily.com.cn/a/202204/21/WS62610f47a310fd2b29e5871c.html