Carson Block Says Investors Failed to Examine China Risk
- China has been capricious on policy changes, he says
- Muddy Waters taking a market neutral approach to investing
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Investors haven’t taken into account the market risk inherent in China, said short seller Carson Block.
“I think that investors for the past decade were basically pulling the wool over their own eyes on the capriciousness of the policy environment in China,” Block, chief investment officer of Muddy Waters Capital, said in an interview Monday on Bloomberg TV. “So that’s coming home now to bite a number of investors. But it’s just one of many risks that you really need to take into account but investors have not.”