Tuesday, September 16, 2014

WHO'S SELLING CHINA?: the answer will shock you

Heh heh heh. I love writing Business Insider style headlines.

Anyway, I was over at Zerohedge reading the headlines. I like doing this when the US market goes risk-off, just to remind myself what stupid things American investors will be blaming the flows on.

Zerohedge noted that Chinese equities have been getting killed the past few days.

So hey, let's look at some charts!

Yup, the China 25 ETF, which owns a bunch of state-owned industries and which American hedge funds buy because it's the only one with liquidity, has dropped hard this past week.

And yup, YAO, the China All-Cap ETF that nobody buys, has dropped in tandem.

My gawd, China is really getting hamm oh wait

Um, why is the Shanghai exchange still moving up? There's no failed breakout after all.

In fact, FXI as of close yesterday was trading at a slight (<-1%) discount to NAVPS.

So basically, Americans are the ones who are selling China.

Because reasons.

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