We follow over 5,200 equities, ADRs and GDRs with short interest in Europe in our Blacklight SaaS platform and Black App with $286 billion of total short interest. Average Short Interest % of Float is 4.15% and S3 SI % Float (which includes synthetic longs created by every short sale in the Float number) is 3.82%. The average stock borrow fee is 0.67%. As a comparison, U.S. equites have an average SI % Float of 5.30%, S3 SI % Float of 4.77% and average stock borrow fee of 0.53%.
Looking at Short Interest as a % of Float, we do see a significant decrease in shares shorted, but just counting the total amount of physical shares shorted does not give a complete picture of short selling and short exposure. We need to look at Short Interest, or dollars at risk, to truly see what the shorts are doing.
Short interest is Alibaba Group ADR (BABA US) had been in a $6 to $8 billion trading range from October 2015 to July 2016 but after reporting strong earnings on August 10th short interest has grown significantly along with its stock price.