Wednesday, June 29, 2011

Investors pile into the bet against China

According to FORTUNE China Bear Jim Chanos is not alone. The well-known short-seller and vocal China bear spoke last month of not finding enough available shares to short some U.S.-listed Chinese companies with questionable accounting practices. Just a week after his interview, a short seller's report on a U.S.-listed Chinese timber company sent its stock tumbling 90%.

Indeed, the rush of traders making bearish bets on Chinese stocks is the latest evidence of growing trend among smart money: if you're not bearish on China, you're missing the next big trade.

"The market and foreign academics have both turned more pessimistic," says Dan Rosen, a partner at the Rhodium Group who follows U.S.-China relations.

Chanos started things off ….

http://finance.fortune.cnn.com/2011/06/29/investors-pile-into-the-bet-against-china/

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