We examine both market herding and industrial herding in the Hong Kong stock market. Our results find evidence that industrial herding occurs in the second and third sub-periods. The introduction of short selling activities in the third sub-period increases herding activity and changes herding to a short-term activity. We find herding in the up-market, high trading volume, and high and low trading volatility states after controlling for past CSAD and CSAD volatility. In addition, industrial herding remains while market and size herding disappear after short selling is introduced in 1993. Consistent with the literature, we find that investors do not herd on market/industry and systematic factors at the same time.