US investors bet fall in China stocks

(Shanghai Daily)
Updated: 2007-06-21 13:23

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US investors who put cash into mutual funds which invest directly in Chinese stocks are using those funds to gamble that a decline is on the way, the Wall Street Journal said in its "Fund Track" column.

Shares of several closed-end funds that invest in China are trading at substantial discounts to the actual values of the funds' holdings, which wasn't the case a few months ago, the newspaper said. Some investors are selling fund shares short; short selling of actual stock isn't allowed in China, so that's one of the few ways to bet on a price fall, the newspaper said.


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