There is a network of organisations that stands to profit by association with short-selling research companies such as Muddy Waters Research, Anonymous Analytics, and Glaucus.
Since its establishment six years ago, Muddy Waters Research has short-sold seven Hong Kong listed companies, and its latest attack was during 16-19 December 2016, when it released two short-selling reports on China Huishan Dairy (6863.
The effects of these short-selling reports vary, but the targeted company usually suffers a big drop or amplitude on the same day.
Using Glaucus's short-sale of Fullshare as an example, according to inside sources, Glaucus and other short-sellers already had their plan laid on 10 February 2017, but when substantial profits couldn't be made, they published the short-selling report to maximise their profits.
The WSE has undertaken a number of activities to explain the short-selling initiative to market participants, including participation in a seminar held by Deutsche Bank's domestic custody services business in London on 18 June.
When we talk to large derivatives players in London, they mention the lack of arbitrage opportunities and short-selling is often raised as an obstacle," he said.
When the ban was introduced, FSA chief executive Hector Sants said that while short-selling was a legitimate investment technique in normal market conditions, "extreme circumstances" had given rise to "disorderly markets".
Although the FSA will be reintroducing short-selling, it will keep some weaker rules requiring firms to disclose short positions beyond certain thresholds.
There were fears that reintroducing short-selling could cause the value of banks' shares to drop sharply at a crucial time for the country's economy.
What has changed since the original crisis is that the Government is now part-owner of these banks into which short-selling is going to be reintroduced.