Since the beginning of this year, Chinese stocks listed in the United States and Hong Kong have always been a reliable profitability strategy. The collapse of the record last week is an excellent time to short these stocks.
According to BloomberThe profitability of the market price reached 4.4 billion US dollars (about S $ 6.2 billion), and the return rate was 7.5%compared to the average short position of $ 59 billion.
The report states that most of the short positions are profitable. Of 1645 only the short stocks, 74 % of the stocks bring profit to the shortcomings. According to the short amount, 92 % generate a positive return.Essence
"You don't have to be a great investor," said IHOR DUSANIWSKY, Managing Director of S3's prediction and analysis."You only need to choose the industry that short, and then choose the largest stock."
The macroeconomic uncertainty after the reorganization of the Chinese leadership drives the downward pressure of the market.Last week, 14%of China's stocks listed in the United States have fallen, and Hong Kong's Hang Seng Index has hit the largest decline since 2008.
Dusaniwsky said that the market has a wide range of shorts, from head to the bottom stocks.Two days when the market plummeted, the most favorable goal of Keetu was Alibaba, Pinduoduo, and JD.com's US deposit vouchers, as well as stocks listed in Hong Kong in Ping An, Tencent and Meituan in Hong Kong.
S3 said that more importantly, as the downward trend of prices remains unchanged, Chinese stocks may continue to be short.However, the report also pointed out that if these stock trends are reversed, some investors have stopped building new short positions and the possibility of markets entering short -term replenishment.
