In the market significantly increased the number of players who are betting on the fall of Chinese stocks. The volume of shorts - at 5-month high (since the swelling of the next bubble on the shares of China) - Materials AMarkets.
The volume of shorts in US ETF, which specialize in Chinese stocks, for the last two weeks almost doubled to 28% of all shares in circulation (data Markit on November 27). Such a surge of negative expectations was recorded in June, when China's stock market had a massive sell-off in the amount of $ 5 trillion. Then the Shanghai Composite rebounded by 25%. And here again bearish sentiment gaining momentum against the backdrop of China's active efforts of the authorities to support their financial markets and bad data enterprise reporting companies of China.
Last Friday, the flagship fund of Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (monitor 300 shares of China "A" class) fell more than 7% to 3-week low. At the same time the shares of Chinese companies still can not be called cheap. Shanghai Composite is trading at a multiplier 13 to forecast earnings for the next 12 months. Premium is 30% for the 5-year average - data of Bloomberg.