Morgan Lewis partner Wai Ming Yap shares his insight in a Regulatory Intelligence article by Thomson Reuters on the short selling regime order issued by The Monetary Authority of Singapore. He mentions, “If certain shares have been shorted, market participants may think that something bad will happen to those shares. Once you short a counter, the expectation is that the price of a particular share will tank and depending on your view of the company, you may dump the shares in case further bad news are released or buy it cheap."
Read the full Regularity Intelligence article.