China Large-Cap ETF Short Sales Collapse on Stimulus Bets: Chart

Market sentiment on China’s biggest companies has improved in the past two months as investors expect further stimulus. Short interest on the U.S.-listed iShares China Large-Cap ETF collapsed from a two-year high of 19 percent a month ago to 8.1 percent on June 30, data compiled by Markit Ltd. and Bloomberg show. The state-owned enterprises hooked on cheap credit have the most to lose from China’s banks tightening the lending spigot.

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