Shanghai Rout is On
Misguided China bulls shorting the dollar and buying Chinese stocks have gotten their heads handed to them on a platter.
Those aware of the fraud, corruption and simple sustainability of economic growth in China either stayed away completely or were short China like Jim Chanos.
Bloomberg reports Shanghai Rout Sinks ADRs
Chinese stocks in New York slid to a two-week low as the Shanghai Composite Index's slump below a key level for the first time in three years stoked concern government efforts to avert a slowdown won't be sufficient.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. dropped for a third day, losing 0.7 percent to 90.18 by 12:44 p.m. in New York. The decline followed the Shanghai Composite Index's descent below 2,000 for the first time since 2009. Mobile-chip designer Spreadtrum Communications Inc. (SPRD) sank after its stock rating was cut.