How To Short China Stock Market? (2018)



How can I short the Chinese stock market?

China stocks being absolutely crushed, but I think they have more to go!


It’s an interesting one and something I’ve been looking myself!

Beijing is notoriously tight on shorts and speculators are normally executed. Or something close to that. There is limited shorting options allowed in Chinese domestic markets but that’s probably offset by Beijings maximum drawdown policy which meant stocks can’t plunge…

• You could target Chinese companies on western stock exchanges though…

If you put a short on Alibaba or Tencent it would have the same effect…

• You could also see which ETFs were effected during 2015 drawdown and makes relevant moves…

e.g. you could invest in an ETF like ETFS Short CNY Long USD ETC (SCNY), which shorts yuan for dollar…


If you were making a pure currency play, you could invest in Chinese exporters or the relevant ETF:

db x-trackers CSI 300 Industrials UCITS ETF (HK 3005)

You could also invest in these inverse China ETFs, all of which have posted gains in light of recent drawdowns:



One thing I would say…

Don’t get too clever with those Chinese x3 leveraged ETFs.

Most of them are thinly traded - meaning not many people are buying and selling them.

The problem isn’t buying them, it’s selling them!