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by mettamage 1789 days ago
I feel a bit too far removed from this, so my comments might be a bit too curious without considering other perspectives (aka I am a bit naive on this topic).

With that said:

Global investors are getting squashed. But there must be global investors who shorted these stocks or bought put options. Why aren’t they covered in this article?

I’m missing nuance on the investment side. From a political standpoint, I want to follow this more closely. I can imagine that the west might take some inspiration on how to deal with big tech.

Armchair investor and my political pedigree is “I vote” (aka a total commoner).

3 comments

Intelligent shorts can look at factors like - is this company an outright scam (Wirecard)? is this company in a market which is likely to shrink? are its competitors on the verge of a breakthrough technology? They wouldn't necessarily have inside knowledge that the government of the country is going to force companies to turn into non-profits (like happened recently with Chinese school tutoring companies). That's like having an asteroid hit.
> But there must be global investors who shorted these stocks

Why would you short a tutoring stock, especially if whats publicly traded is an investment fund that only does it as a small part of their business?

If you think about it from a macro perspective, we're talking about Chinese companies generally suffering an investment hit. It is unlikely there are very many people "shorting china".

But even so, shorts "dont make the world go round". They are a necessary mechanism against exuberance, but companies selling shares and using those to invest/grow -- that's the heart of the promise of shareholder capitalism.