China

: Those who remain bullish on China long-run economic prospects have switched more of their focus to the Hong Kong market because valuations are lower, it is better regulated, and less prone to the whims of officials in Beijing than the mainland markets in Shanghai and Shenzhen, according to Euro News. Funds that see the recent declines in the yuan, Chinese asset prices, and the nation exports as a harbinger of much more economic pain to come are responding with an array of maneuvers. The implosion in Chinese equity prices after a domestic, debt-fuelled buying binge has triggered a range of responses from foreign investors. Those include betting against the currencies of Asian trading partners, and shorting British banks HSBC Holdings Plc and Standard Chartered Plc, who both have big exposure to China. The investors who are betting against China or have given up on it as an investment destination are in the minority, though. Some are even buying U.S. mortgage-backed bonds on the expectation that rich Chinese will take money out of China and pour it into U.S. real estate as a safe haven. (news.financializer.com). As reported in the news.