Shorting China Market

I couldn't write my blog for last few weeks. We were in the middle of a product release. We alpha released first in our next generation of products.

And as always, during day I was scribbling on my white board and coding.
And during nights, I was dreaming about how I am gonna write code the next day.
Finally it's back to reasonable schedule now. ....After 10 years of doing the same thing, somehow it is still exciting.

This year has been very bad for stock market globally. Some are calling for global slowdown of the economy lead by USA.
China stock market has gone up more than 100% during last one year, many say that it is due for a big crash now.



This is a bad time for investing in the growth of the market. But how about investing in the crash of a market? People call it short selling or shorting a stock. This is against traditional wisdom, but might pay off big time.

There is an ETF which shorts the chinese market. It's called FXP (Proshares ULTRASHORT FTSE/XINHUA CHINA 25).

The FXP approximately moves two times against the ETF FXI (iShares FTSE/Xinhua China 25 Index).

• When FXI goes up 100 points, FXP goes down 200 points.
• When FXI goes down 100 points, FXP goes up 200 points.

This weekend I will spend some time to research FXP.