Hedge Funds Slash Exposure to U.S. Stocks That Count on China
- Backing away from firms both selling and manufacturing there
- Concerns that world’s biggest growth engine could be faltering
The Sands China Ltd. Venetian Macao resort and casino, operated by Sands China Ltd., a unit of Las Vegas Sands Corp., in Macau, China.
Photographer: Billy H.C. Kwok/Bloomberg
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The split screen views of U.S.-listed Chinese stocks falling as the S&P 500 marches higher suggest that China’s pains are localized. That may be true, but one group of investors is not taking its chances.
Hedge funds that make both bullish and bearish wagers on stocks are slashing their exposure to American companies that lean heavily on China for businesses, such as Las Vegas Sands Corp. and General Motors Co., according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit.