China Life Insurance Short Interest Ratio and 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 April 15th, investors have sold 2,440,000 shares of LFC short.

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. China Life Insurance currently has a short interest ratio of 4.0.

China Life Insurance saw a increase in short interest in the month of April. As of April 15th, there was short interest totaling 2,440,000 shares, an increase of 1.2% from the previous total of 2,410,000 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.

0.00% of China Life Insurance's shares are currently sold short. Here is how the short interest of companies in the industry of "life insurance" compare to China Life Insurance: AIA Group Limited (0.00%), AXA SA (0.00%), MetLife, Inc. (2.50%), Prudential plc (0.00%), Manulife Financial Co. (0.30%), Prudential Financial, Inc. (1.25%), Sun Life Financial Inc. (0.22%), Swiss Re AG (0.00%), Aviva plc (0.00%), and Lincoln National Co. (2.97%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Analog Devices, Inc. ($5.85 billion), Aon plc ($5.61 billion), Charter Communications, Inc. ($5.44 billion), Snap Inc. ($3.49 billion), Airbnb, Inc. ($3.35 billion), Peloton Interactive, Inc. ($2.53 billion), ViacomCBS Inc. ($2.48 billion), Expedia Group, Inc. ($2.39 billion), The Kroger Co. ($2.26 billion), and Nuance Communications, Inc. ($2.18 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. China Life Insurance's stock is trading up $0.13 today. To short China Life Insurance 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 China Life Insurance 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 April, 15 2021.