DeepSeek fever cools as hedge funds continue to sell China stocks

 Hedge funds sold China equities for the fourth-straight week, according to Goldman Sachs' prime brokerage desk.

Sales were driven by both shorts and longsat a ratio of 2.3 to 1.

"Macro Products and Single Stocks were both net sold and made up 77% and 23% of the total notional net selling, respectively," Goldman said. "Onshore and offshore equities were net sold on the week, led by ADRs and H-Shares."

"Post DeekSeek (DEEPSEEK), China was by far the most notionally net bought market on the Prime book YTD thru Feb 17th, around which HFs have reversed course – net flow in Chinese equities (NYSEARCA:FXI) (NASDAQ:MCHI) (NYSEARCA:KWEB) (NYSEARCA:CQQQ) (NYSEARCA:YINN) (NYSEARCA:YANG) is now roughly flat on a YTD basis."

"Gross/Net allocations to Chinese equities now stand at 5.6%/8.7% of total Prime book exposure, which ranks in the 89th/97th percentiles vs. the past year and in the 27th/51st percentiles vs. the past five years," Goldman added.

https://www.msn.com/en-us/money/topstocks/deepseek-fever-cools-as-hedge-funds-continue-to-sell-china-stocks/ar-AA1AyWBI