These Chinese Companies as Top Short Selling Candidates

While shorting stocks that trade on Chinese exchanges is illegal, no such prohibition exists for stocks of Chinese companies that trade on American exchanges.  Call this investment strategy a short-China-by proxy, if you willBarron’s is reporting that traders believe hedge funds are targeting the following Chinese stocks:

  • Sino-Forest (TSE:TRE): The shares are presently trading at $3.25, down $0.09, or 2.1%, in morning trading.  Its market capitalization is $792 million.  The shares have traded in a 52-week range of $2.85 to $25.85.  About the company: Sino-Forest Corporation is a commercial forest plantation operator in the People’s Republic of China.  As of December 31, 2009, Sino-Forest had approximately 512,700 hectares of forest plantations located primarily in southern and eastern China. (Note: prices here are quoted in Canadian dollars.)
  • Harbin Electric (NASDAQ:HRBN):  The shares are presently trading at $7.82, up $0.84, or 12%.  The shares fell from $14 to $5.82 in yesterday’s trading.  Its 52-week range is $5.82 to $25.05.  About the company: Harbin Electric, Inc. designs, develops, and manufactures linear motors and special electric motors.  The Company builds customized linear motors for a variety of applications and industries.  Harbin Electric provides its linear motor products and systems to end users throughout China, as well as other industrial original equipment manufacturers overseas.
  • Wynn Macau (PINK:WYNMF):  The shares are trading at $2.86, and have traded in a 52-week range of $1.57 to $3.65.  About the company: Wynn Macau, Limited owns and operates a hotel and casino resort. It conducts gaming activities, including VIP casino, mass market casino, and slot machine gaming operations in Macau.
  • iShares FTSE 25 China ETF (NYSE:FXI): The shares are trading at $42.15, up $0.07, or 0.17%, on the day.  The shares have traded in a 52-week range of $38.59 to $47.99.  iShares FTSE/Xinhua China 25 Index Fund is an exchange traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield performance of the FTSE/Xinhua China 25 Index. The Fund invests 90% of its assets in the underlying index, which represents the performance of the largest companies in the China equity market.

Other China-related ETFs include:

  • iShares FTSE China (HK Listed) Index Fund (NASDAQ:FCHI): iShares FTSE China (HK Listed) Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield performance of the FTSE China (HK Listed) Index.
  • PowerShares Golden Dragon Halter USC China Portfolio (NYSE:PGJ): Powershares Golden Dragon Halter USX China Portfolio is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield of the USX China Index. The Fund will normally invest at least 80% of its total assets in common stocks of companies deriving a majority of their revenues from the People’s Republic of China.
  • SPDR S&P China ETF (NYSE:GXC):  SPDR S&P China ETF is an exchange-traded fund incorporated in the USA. The Fund’s objective is to replicate the performance of the S&P China BMI Index. The Index measures publicly traded companies domiciled in China, but legally available to foreign investors.
  • Claymore/AlphaShares China Small Cap Index ETF (NYSE:HAO):  Guggenheim China Small Cap Index ETF is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield performance of the AlphaShares China Small Cap Index.
  • Claymore/AlphaShares China All-Cap ETF (NYSE:YAO):  Guggenheim China All-Cap ETF is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the AlphaShares China Index.
  • Global X China Technology ETF (NYSE:CHIB): The Global X China Technology ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S-BOX China Technology Index.
  • Global X China Energy ETF (NYSE:CHIE): The Global X China Energy ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S-BOX China Energy Index.
  • China Materials ETF (NYSE:CHIM): The Global X China Materials ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S-BOX China Materials Index.
  • Claymore China Technology ETF (NYSE:CQQQ): Guggenheim China Technology Exchange-Traded Fund Trust 2 is an exchange-traded fund incorporatedin the USA. The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the AlphaShares China Technology Index (the “Index”).

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