US-based hedge funds sold around $700m in New York-listed shares of Chinese companies during July amid a rally in the country’s stocks, according to a report by Bloomberg citing data from Morgan Stanley’ prime brokerage division.
US-based hedge funds sold around $700m in New York-listed shares of Chinese companies during July amid a rally in the country’s stocks, according to a report by Bloomberg citing data from Morgan Stanley’s prime brokerage division.
PDD Holdings, Yum China Holdings, and Vipshop Holdings were among the companies most sold down by long-only managers over the month, as the The Nasdaq Golden Dragon index of Chinese company American depositary receipts (ADRs) surged 11% during July on the back of potential further government support for the China’s struggling economy.
In a sign that US hedge funds aren’t convinced that Beijing will do enough to sustain the stock rebound, last Monday’s 4.3% advance – the largest seen since February – was fuelled by a surge in short covering, and managers adding net new positions, according to Morgan Stanley.
