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From Precy Dumlao, Opalesque Asia:

Concerns of tightening measures by the Chinese government on Chinese equities due to increased inflation pressures saw the Singapore-based and Cayman-domiciled APS Greater China Long/Short Fund slide -3.2% in November (+16.4% YTD).

In its monthly report to investors, APS said “increasing concerns over China’s monetary tightening to rein in the rising inflation weighed on the market and drove returns on our holdings this month [November].” Chinese equities performance started strongly in November as the Chinese government disclosed that October’s CPI grew 4.4% year-over-year, however, the gains were not sustained due to inflationary pressures.

GLC, manager of the $485m hedge fund GLC Global Macro announced in Nov. 01, that it was bullish on Chinese equities; co-manager Steven Bell described it as “the most attractive equity market on a relative basis.” Bell added, "We think it's more attractive to be just long equities outright. We prefer to buy equities because of the risk of capital controls. Central banks outside the U.S. have been moving together and taking aggressive steps to weaken their currencies. A lot of that liquidity is leaking into the stock market."

China’s inflation rose to a 28-month high of at 5.1% in November ......................

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