Shuli Ren, Columnist

Hedge Funds Are Playing a Dangerous Game on Japan and China

Everyone loves the Nikkei and hates the Hang Seng. Don't bet on or against this crowded trade.

January 24, 2024 at 9:00 PM UTC

Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron’s. She is a CFA charterholder.

Wrong-way bet.
Photographer: Qilai Shen/Bloomberg

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A macro hedge fund’s closure has sent shockwaves across Asia’s asset-management world.

Singapore-based Asia Genesis Asset Management Pte is shutting down its macro fund after losing 18.8% in the first weeks of January from a wrong-way bet on Japan and China. Chief Investment Officer Chua Soon Hock was bearish on Japanese equities and bullish on Chinese stocks, and he was caught out by a sharp selloff in the Hang Seng Index and an equally impressive rally in the Nikkei 225 Stock Average.