The difficulty in short selling China and Asian stocks according to Michael Fritzell

Hear Michael Fritzell from Asian Century Stocks explain the difficulty in short-selling of Asian and Chinese stocks.

"Do Asian investors short the market? Some markets are not easily accessible. It can be capital controls for example, in some markets. China doesn't allow short selling of individual shares. And in that case, you have to arrange some kind of a derivative instrument like P notes or something like that, but you can't short-sell shares. Perhaps maybe not in India either. But then you need a counterparty and then you get to counterparty risk, which is another issue. And I also found that if you're short-selling shares in smaller markets like Taiwan or whatever the borrow rates can be quite high. So that really eats into your profits. So not only do you have, you're losing out the dividends, you're also losing out on borrow. So if you're paying 10% for the borrow and also dividends, it makes it a very difficult thing to do very difficult business. And it's not impossible. Hong Kong shares can be short, you can sell those shares short and Japan and such, but there are not as many short sellers active in this part of the world. That's for sure." - Michael Fritzell

Main Site: https://www.analyse.asia/will-the-stocks-from-china-recover-asian-century-stocks-with-michael-fritzell/
Full YouTube Video: https://youtu.be/RxewaGWEttU
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You can find Michael Fritzell's Asian Century Stocks: https://www.asiancenturystocks.com/ and on Linkedin: https://www.linkedin.com/in/michael-fritzell-1aab10/ and X: https://twitter.com/mikefritzell

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