Hong Kong says may scrap stock closing auction
HONG KONG, March 12 (Reuters) - The Hong Kong stock exchange may scrap a post-close auction after complaints that rapid technical trading during the period pushed HSBC (0005.HK)(HSBA.L) shares to a 14-year low on Monday, media reported on Thursday.
"We are all very concern about this and we know that Hong Kong Exchanges is in discussion on this matter," Financial Secretary John Tsang told reporters.
"I believe that they will make an announcement of the decision in an appropriate time." He did not elaborate.
Officials from the Hong Kong Exchanges & Clearing (0388.HK) declined to comment.
HSBC shares plunged 24 percent on Monday in the post-close auction in Hong Kong after technical trading pushed the stock down to HK$33 each ahead of the lender's $17.7 billion rights issue.
Hong Kong securities watchdog Securities and Futures Commission on Wednesday said it had launched a formal investigation into whether the stock's plunge was caused by market manipulation.
Hong Kong Exchanges had said late on Monday the exchange would monitor market activity closely and "report any irregularities it may observe to the SFC." Market participants have been crying foul about the volatility during the auction, asking that the 10-minute window, added in May 2008, be done away with. The auction replaced the earlier system of using the middle price of the last five orders as the closing level.
(US$1=HK$7.8)
