JLHL (Julong Holding Limited) is navigating a dramatic reversal this week — the stock fell 26% on Tuesday alone, yet the borrow market has simultaneously opened up in a way it hasn't in months.
The most striking development is in availability. For weeks this stock was among the tightest borrows on Nasdaq, with availability grinding as low as 2.6% in late May — fewer than three shares available for every hundred already lent. That changed abruptly this week. Availability jumped to 164% by June 23, up from 6.4% just a week earlier. The shift is enormous: the lending pool went from near-empty to genuinely loose in a matter of days. Cost to borrow has also dropped sharply, falling to 76% APR from a peak of 238% on June 18. That's still expensive, but it's a fraction of where it was. The pattern is consistent with a wave of short covering — short interest is down 42% over the past month, and the shares-short count has nearly halved from its mid-May peak above 41,000 to roughly 18,300 now. Previous notes flagged the paradox of easing borrow costs against a still-tight supply pool; that paradox has now resolved, with supply catching up to the reduced short interest.
The ownership structure is the anchor holding everything in place. Hushi Holding Limited controls 93.2% of shares outstanding. That concentration has always been the structural explanation for why this stock moves so violently on thin float — institutional participation beyond that dominant holder is negligible, with FMR (Fidelity) holding just 6,237 shares and Morgan Stanley trimming its position by 22,317 shares in the quarter ending March 31. With free float so constrained, even modest changes in short positioning produce outsized price moves in both directions.
The ORTEX short score eased slightly to 60.8 from 61.7 earlier in the week, though it has been broadly stable in the low-60s for the past ten days. The days-to-cover rank sits at the 79th percentile, reflecting how long it would take shorts to exit relative to typical trading volume — a residual sign of structural tightness even after the covering wave. The utilization rank, while still elevated at 64%, is the loosest it has been since mid-May. The factor scores tell a consistent story: the stock scores near the bottom on dividend (24) and remains in the middle of the sector pack (50), while the short score rank of just 6 reflects the recent softening in short-side pressure.
What to watch now is whether the newly loosened borrow pool invites fresh short interest back in, or whether the 26% single-day drop has simply repriced the risk premium enough to keep would-be sellers at bay.
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