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No Escape for China Hedge Funds Overwhelmed by Stocks Crash

  • Almost 1,300 funds closed in China's $5 trillion stock plunge
  • Government restrictions make bear-market bets more difficult
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It’s about to get even uglier for China’s hedge funds.

The newfangled industry, short on expertise and ways to protect itself from market declines, has seen almost 1,300 funds liquidate amid China’s $5 trillion stocks selloff, and a similar number may be at risk, according to Howbuy Investment Management Co. Now, a government crackdown on short selling and other hedging strategies have made prospering in a bear market difficult.