China AI Stocks Face Short Selling Pressure After Lockups

Short sellers targeting China's booming AI companies are encountering difficulties due to the limited availability of publicly traded shares. This scarcity, which has protected these firms from shorting, is expected to change in July. At that time, stock lockup periods are set to expire, potentially increasing the supply of shares available for trading. This shift could open new opportunities for investors looking to bet against the valuations of these rapidly growing, yet often unprofitable, technology firms.