Tiananmen Square massacre in both earnings and positioning

Red Alert

China just saw the kind of earnings and positioning purge that deserves historical reference. Both hedge fund and mutual fund allocations have cratered to multi-year lows, with GS Prime and EPFR data showing no signs of re-engagement. Retail enthusiasm has cooled, earnings revisions are being “massacred,” and even national team support is proving insufficient to stem the tide. Investors aren’t just underweight China—they’re actively walking away.