Hedge funds that make both bullish and bearish wagers on stocks are slashing their exposure to American companies that lean heavily on China for businesses, such as Las Vegas Sands Corp. and General Motors Co., according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit. (Bloomberg)
Hedge funds are getting spooked by the Beijing’s latest regulatory crackdown and overall slowing of growth in the Chinese economy. Mixed feelings on whether or not this is just a knee-jerk reaction, or a sign of things to come. One thing is for sure, the regulatory crackdowns are set to continue. Another Bloomberg report from earlier today suggests CCP is looking at tightening regulation on network security aspects of ‘intelligent vehicles’.
US and Canadian markets will be closed on Monday, but should be interesting to see what the market reaction is next week.