Short-selling ratio of Japanese stocks hits record high

The ratio of shares sold short in Japan hit a record high on Tuesday, as investors stepped up bets that the markets will fall further on concerns about a slowdown in China and possible US rate hike later this year. The ratio, which measures the amount of short-selling in the total selling, hit 41.0 pct, its highest ever. Although a high short-selling ratio is generally considered a sign of excessive pessimism in the market, investors are not sure if the worst is over yet.