Taking large short positions in stocks in Asia has always been more difficult than in the US - and that's especially true in certain restricted markets, including China, India, Korea and Taiwan. This could prove a problem for hedge funds, as well as other investors, should they feel that equity markets in the region, some of which have gained more than 100% in the past 12 months, are due for some sharp corrections.
Indeed the Chinese equity market has already encountered some big falls. The
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