As $170 billion hedge fund Bridgewater noted, "new participants are now discovering that making money in the markets is difficult," and sure enough, as WSJ reports, [10] Asian hedge funds have suffered steep losses in June. Several hedge funds were hit with losses on longs (unable to square positions due to suspensions) as well as a dearth of effective tools to short, or bet against, Chinese stocks as they dropped, highlighting the downside of investing in an environment where managing risks is difficult and government actions are unpredictable.As the world anxiously awaits tonight's Retail Sales, Industrial Production, and crucially #goalseeked GDP, Chinese big cap stocks are continuing losses from the last 2 days. The CSI-300 - China's S&P 500 - is now down over 7% from post-intervention highs on Monday.
Rather stunningly, as Bloomberg reports, more than 52 percent of the past six months' buy transactions by major shareholders and management in China companies happened in the past week. So it seems that after selling to the farmers on the way up they are no forced to buy the shares back from them...BUT these 4 were selling (off with their heads!!!!)
[11]
It looks like China is going to need a bigger boatload of intervention (though we note that ChiNext and Shenzhen continue to rise). After opening modestly in the green, CSI-300 is fading...
[12]
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.3% TO 3,874.97
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.1% TO 4,068.88
or we are going to see a lot more of this...
[13]
As WSJ reports, [10]
Only a third of Asian hedge funds tracked by Credit Suisse Group AG posted gains in June, and the group saw an average loss of 1.6%.
“Up until the end of last month, most people thought it was a healthy correction,” said Richard Johnston, Asia head for alternative-investments consultancy Albourne Partners Ltd. “I think it went a lot further than many people thought.”
...
Highflying hedge-fund managers aren’t big players in China, which has only recently allowed foreign investors to freely buy mainland stocks through the Shanghai-Hong Kong trading link opened in November. Mom-and-pop investors in the country drive the market and have taken the brunt of the recent rout.
“The Chinese market’s price action is typical for a newly developing equity market that is dominated by unsophisticated speculators,” said Bridgewater Associates LP, the world’s largest hedge-fund manager with about $170 billion under management, in a July note to clients. “New participants are now discovering that making money in the markets is difficult.”
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But all eyes will be pinned to China at 2200ET when the data drops...
[14]
in all it's "manipulated" wonder.
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In other news: Golden Throat, the company with the best comb-over in town, starts trading today in Hong Kong pic.twitter.com/tq8kTW3b2N [15]
— Richard Frost (@frostyhk) July 15, 2015 [16]
