Selling China Stocks Short: Literally

China stock market

Interesting post on the Seeking Alpha blog, entitled, Why It’s Not Too Late to Short China. Grossly simplified, it says inflation is ruining China’s economy and it is not too late to profit from this by shorting China stocks.

The way to short China stocks is to buy the UltraShort FTSE/Xinhua China 25 Proshare ETF, listed on the AMEX exchange under the symbol FXP, which has done very well over the last few weeks.

Interesting idea. What do you think?

4 responses to “Selling China Stocks Short: Literally”

  1. If you “ultra short” FXI, you get FXP. FXI tracks 25 H-share stocks traded in Hong Kong not in Shanghai. Their Shanghai listings are traded huge premiums. So I am not sure the rationale of charting SSECI. Often there are signs of tops or bottoms signifying extreme greed or fear. For instance, Bear Stearns’ trouble in my read probably marks a bottom of American financial stocks. An article such as this may indicate the slide of FXI is near a bottom too.

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