(Bloomberg) -- Short-selling activity on Hong Kong stocks surged Wednesday, pushing the turnover in short positions as a proportion of the market’s total to a record 27%, according to Bloomberg calculations based on exchange data. 

The increase in short-selling turnover reflects investors’ lack of confidence, said Sonija Li, head of retail research at MIB Securities. “Until now, there have been no game-changer policies, resulting in market disappointment.”

Chinese shares have come under renewed selling pressure, with the Hang Seng China Enterprises Index headed for its worst day since late January on Thursday. The absence of potent economic stimulus from Beijing and hawkish signals from the Federal Reserve are sapping investor appetite. 

©2023 Bloomberg L.P.