Wall Street Is Going to Great Lengths to Avoid Chinese Equities
- Direxion launches new ETF targeting emerging markets ex-China
- Skepticism over China has grown over past three years, IG says
This article is for subscribers only.
Global money managers, desperate to avoid exposure to sliding Chinese markets, have fresh investing tools at their disposal as pessimism toward the world’s second-largest economy snowballs.
US financial-products provider Direxion launched a leveraged emerging market-focused exchange-traded fund last week that snubs equity allocations to the Asian nation altogether. It comes as the latest Bank of America Corp. survey shows that going short Chinese stocks — the second-most crowded trade for months now after being long the so-called Magnificent Seven tech companies — is becoming ever-more popular.