Hong Kong exchange to launch Shein options, warrants and short selling on listing day

HKEX will allow short selling of Shein shares and launch weekly and monthly options and derivative warrants from the fast-fashion retailer's trading debut on 1 Sep. The exchange also notified warrant issuers they may list warrants on Shein shares when trading begins.

Hong Kong's bourse operator will allow short selling of Shein's shares after the fast-fashion retailer makes its trading debut on 1 September, as well as launch weekly and monthly options and derivative warrants, it said on Friday.

Shein weekly and monthly options will begin trading on 1 September, with monthly contracts expiring in September, October, November and December this year, as well as March, June and September next year. The options contracts will have a contract size of 500 shares. Weekly contracts will expire on 4 September and 11 September.

HKEX also notified derivative warrant issuers that they may list warrants on Shein shares when the stock begins trading, while the shares will also be eligible for short selling on the exchange. The simultaneous launch of options, warrants and short-selling on Shein's listing day gives investors immediate trading and hedging tools, potentially boosting liquidity and price discovery.

Shein is set to price its initial public offering near the midpoint of its marketed range at HK$48.56 a share, valuing the company at roughly US$26.5 billion, Reuters reported on Thursday, citing two people with knowledge of the matter.