China Big Bears Attracting More Hedge Fund Shortsellers

The principal fear that has gripped investors worldwide, and in some cases entire countries, is the grim prospect for China. In a Bank of America Merrill Lynch European Fund Manager Survey, the Chinese slowdown and resultant commodity price collapse was considered as the biggest tailrisk for world economy in June 2013. The survey includes 248 global fund managers with assets under management of $708 billion.

The world's second largest economy released its Q2 GDP numbers today which came at +7.5%, meeting expectations. But...