USEUROPEAFRICAASIA 中文双语Français
Home / Business

Bearish traders lose big on milk

By Bloomberg | China Daily | Updated: 2016-10-25 07:41

Betting against a loss-making Chinese milk producer is turning into a painful trade for short sellers.

China Modern Dairy Holdings Ltd has surged 81 percent since its July low, making it the third-best performer on an almost 500-member Hong Kong gauge. During that timeframe, short interest in the stock almost doubled to its highest level in 14 months, according to data compiled by IHS Markit Ltd and Bloomberg.

The steepness of the rally by the Maanshan, China-based company is surprising some analysts. There are twice as many sell ratings as buys on the company, which reported a loss in the first half of the year amid slowing Chinese demand for dairy products and rising competition. Investor confidence toward the industry has improved amid speculation milk prices will recover, according to Mizuho Securities Asia Ltd, while the stock surge may be forcing short sellers to return their borrowed shares at a higher price.

Bearish traders lose big on milk

Today's Top News

Editor's picks

Most Viewed

Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US