China Short Sellers Target World’s Biggest Broker Rally
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The world-beating surge in Chinese brokerages is reversing as short sellers increase bets against the stocks and investors speculate regulatory changes will erode earnings.
Securities firms in China with market value of at least $1 billion have dropped about 15 percent on average this year, after more than doubling in 2014. Short interest, or wagers on a decline, in China Galaxy Securities Co. and Shanghai-based Haitong Securities Co. have climbed to at least 12 percent of outstanding shares, the highest among global peers tracked by Bloomberg and Markit Group Ltd.