HK Bourse Closing Auction Needed, Deutsche Bank Poll Says
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Hong Kong Exchanges & Clearing Ltd. should reinstate a closing auction for equities to help calm price swings at the end of the day, according to investors polled by Deutsche Bank AG.
The Hong Kong bourse operator suspended the procedure in March 2009 after moves in stocks spurred concern they were being manipulated. Deutsche Bank’s institutional clients unanimously asked for an improved system for automatically matching trades at the end of the day, the survey found. Local independent brokers oppose closing auctions, said Francis Lun, chairman of the Hong Kong Institute of Financial Analysts.