Hong Kong Stocks Draw Short Sellers' Attention

“While real estate remains the most shorted by value, shorts are looking at technology companies too. Tencent Holdings (700.Hong Kong) saw a sharp rise in short positions to $1.5 billion recently, or 0.9% shares outstanding on loan,” adds Barron’s. “Meanwhile, overseas investors continue to cash out. Year-to-date, aggregate outflows across foreign listed ETFs exposed to Hong Kong have seen $460m of outflows.”

Over 260 U.S.-listed ETFs feature some exposure to China with marquee names including the iShares China Large-Cap ETF, which is the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange. H-shares, or the Chinese stocks trading in Hong Kong are some of the least expensive stocks in the world and FXI has a price-to-earnings ratio below that of the MSCI Emerging Markets Index. [Cheap EM ETFs]

iShares China Large-Cap ETF