Block Retreats on Short Sales Saying China Limits Disclosure

Carson Block says it’s become too difficult to short Chinese equities in the U.S. as bets on stock declines drop by 50 percent from a year ago.

Block, known for his allegations that Chinese companies traded in North America engaged in accounting fraud, said in an interview yesterday that he’s lost interest in betting against the stocks because the government helps protect them. Short interest in the 83 biggest Chinese firms listed in New York has dropped to an average 2.61 percent of the total outstanding, from 5.22 percent a year ago, data compiled by Bloomberg and the U.K. researcher Markit show.