'Long Chinese Stocks' Is Among Most Crowded Trades

By Ye Xie, Bloomberg markets live reporter and strategist

Just a month ago, going short Chinese stocks was one of the world’s most popular trades. Today, bullish China bets are considered among the most crowded positions following Beijing’s stimulus blitz and a fleeting rally, according to Bank of America Corp.’s survey of global fund managers.

Investors’ perception of the Chinese stock market did a complete 180. About 14% of investors believed bullish bets on Chinese equities was one of the most crowded positions in global markets, along with long Magnificent Seven stocks and gold positions, the latest BofA survey for the week ending Oct. 10 showed (full note available to professional subs). Until now, short Chinese stocks had consistently made the list.