05-07-2017, 02:21 PM
China's Big Short Looks More Like a Big Squeeze to Investors
Bloomberg News
July 5, 2017, 5:00 AM GMT+8 July 5, 2017, 10:22 AM GMT+8
Traders who think they’ve found China’s next big short could be setting themselves up for a squeeze.
That’s the takeaway from top-ranked fund managers and analysts after short interest in Ping An Insurance Group Co., China’s largest non-state controlled financial firm, swelled to a record HK$54 billion ($6.9 billion) in June. It’s by far the biggest bearish wager on Hong Kong’s stock exchange, where most of China’s top companies have listings.
While pessimists argue that Ping An is vulnerable as Chinese regulators crack down on the nation’s financial industry, some of the most prescient stock pickers in Hong Kong disagree. They say the company’s low valuation, outsize growth and knack for avoiding the government spotlight could extend the stock’s 34 percent rally this year.
“I would not short it,” said Alex Wong, whose $110 million Leverage Partners Absolute Return Fund outperformed 99 percent of peers tracked by Bloomberg over the past five years. He cited Ping An’s push into China’s fast-growing Internet finance sector as a potential trigger for further gains.
ore details in https://www.bloomberg.com/news/articles/...-investors
Bloomberg News
July 5, 2017, 5:00 AM GMT+8 July 5, 2017, 10:22 AM GMT+8
Traders who think they’ve found China’s next big short could be setting themselves up for a squeeze.
That’s the takeaway from top-ranked fund managers and analysts after short interest in Ping An Insurance Group Co., China’s largest non-state controlled financial firm, swelled to a record HK$54 billion ($6.9 billion) in June. It’s by far the biggest bearish wager on Hong Kong’s stock exchange, where most of China’s top companies have listings.
While pessimists argue that Ping An is vulnerable as Chinese regulators crack down on the nation’s financial industry, some of the most prescient stock pickers in Hong Kong disagree. They say the company’s low valuation, outsize growth and knack for avoiding the government spotlight could extend the stock’s 34 percent rally this year.
“I would not short it,” said Alex Wong, whose $110 million Leverage Partners Absolute Return Fund outperformed 99 percent of peers tracked by Bloomberg over the past five years. He cited Ping An’s push into China’s fast-growing Internet finance sector as a potential trigger for further gains.
ore details in https://www.bloomberg.com/news/articles/...-investors
Specuvestor: Asset - Business - Structure.