How to Profit from a Crash in China

Some market observers think the Chinese market is a bubble. Me, I’m convinced. The Shanghai Composite has basically doubled this year, and it doubled last year as well. That’s not normal and it shouldn’t be expected to continue. In fact, the index is already down about 15% from its peak.
The good news for investors is that ProShares has launched a new ETF designed to profit off China’s misery. The UltraShort FTSE/Xinhua China 25 ProShare (FXP) moves twice in the opposite direction of the Chinese stock market. The underlying index is the FTSE/Xinhua China 25 Index (FXI). Check out how that index has done:
image550.png
Yep, that might be a bubble.

Posted by on November 12th, 2007 at 11:10 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.