{"id":124826,"date":"2011-10-10T21:47:35","date_gmt":"2011-10-11T04:47:35","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/?p=124826"},"modified":"2011-10-10T21:47:35","modified_gmt":"2011-10-11T04:47:35","slug":"want-to-short-china-now-its-already-too-late","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2011\/10\/want-to-short-china-now-its-already-too-late\/","title":{"rendered":"Want To Short China Now? It's Already Too Late"},"content":{"rendered":"

Business Insider analyzes the increasing bearish view of the Chinese economy and the practice of selling securities, “shorting”, Chinese investments:<\/a><\/strong><\/p>\n

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After this almost-year-long underperformance of Chinese equities in Hong Kong\u00a0vis-\u00e0-vis <\/em>the US, for example, the bearish bets we bears have been making for a year or so have been paying off very well even though the Chinese economy has not \u201ccollapsed\u201d yet.\u00a0 At the beginning of this year,\u00a0shorting China<\/a> was among the most contentious investment ideas.\u00a0 Now, it is no longer as contentious as it was at the beginning of the year.\u00a0 When the proposition loses a certain degree of contentious nature, it means that those bets are no longer as cheap as they were 10 months ago.\u00a0 And don\u2019t forget that\u00a0even the most epic bear market would surprise investors with occasional huge rallies from time to time<\/a>.\u00a0 Being long in China is risky, but getting into the short now might be just as risky.<\/p>\n

Of course, if you are now very convinced that China will \u201ccollapse\u201d, whatever it means, there will certainly be downside.\u00a0 But be aware that you have already lost the best time window to make bearish bets.\u00a0 Sorry, but yes, you are coming in a little bit too late.<\/p>\n<\/blockquote>\n

Jim Chanos, the president of Kynikos Associates, shared his pessimism on China’s growth in this video<\/strong><\/a>:<\/p>\n