China Life Insurance (LFC) Short Interest Ratio & Short Volume

Short interest is the volume of China Life Insurance shares that have been sold short but have not yet been closed out or covered. As of August 15th, investors have sold 619,400 shares of LFC short. Learn More on China Life Insurance's current short interest.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. LFC shares currently have a short interest ratio of 1.0. Learn More on China Life Insurance's short interest ratio.

China Life Insurance saw a drop in short interest in August. As of August 15th, there was short interest totaling 619,400 shares, a drop of 38.7% from the previous total of 1,010,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

Here is how the short interest of companies in the sector of "finance" compare to China Life Insurance: Manulife Financial Co. (2.02%), MetLife, Inc. (1.32%), Prudential Financial, Inc. (1.95%), Sun Life Financial Inc. (1.55%), Prudential plc (0.13%), Corebridge Financial, Inc. (2.15%), Aegon Ltd. (0.57%), Reinsurance Group of America, Incorporated (0.66%), Globe Life Inc. (1.60%), Primerica, Inc. (3.61%),

As of the most recent reporting period, the following stocks had the largest short interest positions: Occidental Petroleum Corporation ($4.13 billion), Charter Communications, Inc. ($3.94 billion), Coinbase Global, Inc. ($2.38 billion), Lucid Group, Inc. ($2.30 billion), T. Rowe Price Group, Inc. ($2.22 billion), Williams-Sonoma, Inc. ($2.02 billion), Plug Power, Inc. ($1.94 billion), Chesapeake Energy Co. ($1.91 billion), Unity Software Inc. ($1.82 billion), and Rivian Automotive, Inc. ($1.74 billion). View all of the most shorted stocks.

Short selling LFC is an investing strategy that aims to generate trading profit from China Life Insurance as its price is falling. To short a stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that a stock will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for China Life Insurance occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of LFC, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including LFC, twice per month. The most recent reporting period available is August, 15 2022.