China has been a major focus in recent years for short selling research firms. Short sellers make money by borrowing stock, selling it, and hoping to repurchase and return the borrowed stock at lower prices. Short selling campaigns put short positions into place, and then publish reports about the companies that often allege fraud or overvaluation. The campaigns often lead to a sharp decline in stock prices, investigations, and even delistings, giving the short sellers significant profits.
I am planning to teach a course this fall at Peking University that will focus on short selling campaigns against Chinese companies. I want to share some interesting data about the history of short selling campaigns against Chinese companies. I obtained this data from the excellent database offered by Activist Shorts Research. Founder Adam Kommel kindly gave me access to this database. I highly recommend that any fund investing in Chinese equities subscribe to it.
Here is a table I extracted from the data: