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Opinion
Shuli Ren

When Will the Bleeding Stop in Emerging Markets?

Hedge funds are signaling that troubled times will last a while longer.

Trying to time it in Shanghai.

Trying to time it in Shanghai.

Photographer: Qilai Shen/Bloomberg

Hedge funds haven’t been this bearish for years.

In the last month, funds quickly sold down their positions in emerging markets to levels last seen in August 2015, when China scared the world with a surprise devaluation, and early 2016, when Beijing terminated a silly experiment with circuit breakers in a futile attempt to rescue the stock market.