Hendry added to China short before market crash

Eclectica's Hugh Hendry added to a short position in Chinese equities in May, weeks before a soaring interbank rate sent the country's stock market into bear territory, it has emerged.

The CSI 300 fell 6.3% on Monday as the People's Bank of China refused to inject more liquidity into the banking system. It fell a further 7% on Tuesday morning, before rallying strongly to close down just 0.3%. Losses continued on Wednesday however, with the index closing 0.4% lower, capping a tumble of 17% in the last month. Hendry, manager of the Eclectica hedge fund, said the fund had benefited from the fall thanks to its short position, a trade he added to just weeks before the country's stock market saw a sharp sell-off caused by the central bank's actions. "This year we have ...