Big Shorts Are Quickly Turning Dangerous in China’s Wild Market

  • Social media speculation sparks massive moves in China stocks
  • Volatility to remain high amid uncertainty over Covid policy
WATCH: Thomas Fang of UBS discusses China’s economy amid the Covid lockdowns, the stock market, and the country’s ailing real estate market.Source: Bloomberg
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Betting that Chinese stocks will extend the world’s worst run of losses just got a whole lot riskier.

A frenzied two-day rally in the nation’s shares -- built on the flimsiest of speculation -- gives a small taste of how epic price moves will be if or when authorities in Beijing give a clear signal on ending their Covid-Zero policy.