China Is Becoming a Data Black Hole, Short Seller Aandahl Says

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China Is Becoming a Data Black Hole, Short Seller Aandahl Says
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(Bloomberg) -- China’s restrictions on overseas access to data are driving investors away, according to short seller Blue Orca Capital LLC, whose founder...

-- China’s restrictions on overseas access to data are driving investors away, according to short seller Blue Orca Capital LLC, whose founder says the curbs undermine the investment case for the world’s second-largest stock market.

The data access difficulty, coupled with the market’s plunging valuations, has led Blue Orca to cut the time it spends studying Chinese companies listed in Hong Kong and the US to 5% to 15%, down from about 70% previously, Aandahl said. The short seller shot to prominence in 2018 when its criticism of corporate governance at Samsonite International SA, a US-based company, led to the resignation of the luggage maker’s chief executive officer. Blue Orca has since targeted e-commerce platform Pinduoduo Inc., furniture maker Kasen International Holdings Ltd. and a dairy products manufacturer China Feihe Ltd. among other Chinese bets.

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