Hedge funds, which have recently poured into Chinese stocks on hopes of economic stimulus, have seen a 180-fold reversal in performance. Goldman Sachs said the net selling volume was 1.4 times the previous record. Earlier this week, the National Development and Reform Commission offered no details on further stimulus measures to boost the world’s second-largest economy, which has led to a record exodus. Local officials said China would speed up the issuance of special bonds to local governments to support regional economic growth, but did not announce any new major spending plans. “Hedge funds were quick to sell off Chinese stocks as the response from the National Development and Reform Commission was muted,” Goldman Sachs strategists said in a note to clients on Wednesday. “Hedge funds not only unwound their long positions but also added to their short positions, with the number of long sales being Twice the amount of short selling.” Hedge funds were piling into developing markets at a record pace just a week ago as Beijing’s rare stimulus blitz unleashed new optimism. The excitement was underscored by hedge fund manager David Tepper of Appaloosa Management, who told CNBC he was buying “everything” related to China because of the latest government support. ”. Mainland China’s CSI 300 stock index has had a roller-coaster week following the Golden Week holiday – widely blamed on disappointing updates from officials. The benchmark index surged more than 10% at the open on Tuesday, but later pared gains to 6%. After Wednesday’s sell-off, the benchmark index is down 0.5% so far this week. “When you grab the dragon’s tail, you can expect a wild ride,” MRB Partners partner Mehran Nakhjavani said in a report. “Some investors who embraced the idea of massive policy stimulus in late September were disappointed that it would follow. Confused by lack of fiscal support. Investors are now eagerly awaiting China’s finance minister’s press conference on Saturday for further clarity on the government’s planned measures to boost the economy.
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved