Hendry added to China short before market crash

clock

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

  • 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

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Artemis' Altaf on a decade in EMs, SmartGARP's evolution and why it is dangerous to avoid China

Artemis' Altaf on a decade in EMs, SmartGARP's evolution and why it is dangerous to avoid China

'There is no perfect model for the world and the equity market'

Katrina Lloyd
clock 22 July 2025 • 11 min read
TEMIT's Chetan Sehgal: Finding value in India

TEMIT's Chetan Sehgal: Finding value in India

'Robust growth prospects'

Chetan Sehgal
clock 15 July 2025 • 3 min read
GIB AM's Kunal Desai: Emerging markets thrive as dollar dominance declines

GIB AM's Kunal Desai: Emerging markets thrive as dollar dominance declines

'Damage is done'

Kunal Desai
clock 09 July 2025 • 2 min read
Trustpilot