HWORLD-S (01179) saw its stock price surge by 5.02% in Tuesday's pre-market trading, defying expectations amidst high short selling activity. This unexpected rally comes as the latest Hong Kong stock short selling data reveals HWORLD-S as a prime target for short sellers.

According to the most recent short selling rankings, HWORLD-S stands out with a notably high short selling ratio of 45.24%. More strikingly, the stock ranks 6th in terms of deviation value at 22.93%, indicating a significant increase in short selling compared to its 30-day average. This elevated short interest typically suggests bearish sentiment among traders, making the stock's upward movement particularly noteworthy.

Market analysts speculate that the sharp price increase could be indicative of a potential short squeeze. As short sellers rush to cover their positions in the face of unexpected positive momentum, they may be inadvertently driving the stock price higher. Additionally, the surge might reflect strong underlying fundamentals or positive news that has yet to be widely disseminated, outweighing the downward pressure from short selling activities. Investors are advised to closely monitor HWORLD-S for further developments as the trading session progresses.