July 13, 2015

THERE IS NO FUTURE THERE:

Hedge Funds Reassess China After Market Free Fall (ALEXANDRA STEVENSON, JULY 13, 2015, NY Times)

Over the last month, trillions of dollars of value were wiped from the domestic market as stocks plunged by more than a third. The Chinese government has stepped in, issuing a series of increasingly aggressive moves to prop up the market.

Hedge funds are now reassessing their positions and questioning the role of the government in China's stock market.

O'Connor, a $5.6 billion hedge fund owned by UBS, is one such investor. The Chinese government's moves have left the firm unsure about how to maneuver.

"The intent is clearly to restore investor confidence and market stability, but this is a huge setback for Chinese capital market liberalization," Dawn Fitzpatrick, the chief investment officer of O'Connor, said by email. The government's moves, she added, "will materially impact their ability to attract foreign capital, which has been a key policy initiative."

Posted by at July 13, 2015 8:11 PM
  

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