Hedge Fund Cuts China Stocks to Zero in Year Worse Than 2008
- Shanghai Banxia says economy could weaken as Covid spreads
- Founder Li Bei holds short-term bonds on China rate-cut bet
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As China’s markets gyrate following Covid outbreaks and Russia’s invasion of Ukraine, one of the nation’s best-performing macro hedge funds is bracing for more pain.
Shanghai Banxia Investment Management Center, which topped local rankings in 2020, has cut its stock exposure to zero in anticipation of a worsening economy and further declines in equities, founder Li Bei said. The fund, which manages more than 5 billion yuan ($785 million), has also closed almost all short positions in commodities after rising prices led to losses.