Eclectica's Hugh Hendry added to a short position in Chinese equities in May, weeks before a soaring interbank rate sent the country's stock market into bear territory, it has emerged.
The CSI 300 fell 6.3% on Monday as the People's Bank of China refused to inject more liquidity into the banking system. It fell a further 7% on Tuesday morning, before rallying strongly to close down just 0.3%. Losses continued on Wednesday however, with the index closing 0.4% lower, capping a tumble of 17% in the last month. Hendry, manager of the Eclectica hedge fund, said the fund had benefited from the fall thanks to its short position, a trade he added to just weeks before the country's stock market saw a sharp sell-off caused by the central bank's actions. "This year we have ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
