China Bears Who Foresaw the Crash Are Back With Record ETF Short
- Short interest in ASHR rises to 28% of outstanding shares
- Similar jump in bearish bets preceded China's $5 trillion rout
Pedestrians walk past the Shanghai Stock Exchange building in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
U.S. short sellers are piling on bets against Chinese equities at the fastest pace since the height of the nation’s stock-market bubble five months ago.
Short interest in the largest U.S. exchange-traded fund tracking domestic Chinese stocks more than doubled in two weeks to a record 28 percent of shares outstanding on Nov. 27, according to data compiled by Markit and Bloomberg. When such wagers last climbed this fast in June, short sellers proved prescient as China’s equity-market boom turned into a $5 trillion rout.