A number of managers of international and emerging markets mutual funds who had invested heavily, and successfully, in China are now cutting back on their holdings, the Associated Press reports.

Noting that China’s domestic A shares have risen nearly 500% in the past two years, Justin Leverenz, manager of the Oppenheimer Developing Markets Fund, said he expects the bubble to burst soon—and fast. “2008 will be an incredibly difficult year for Chinese equities,” Leverenz said. The market is in the “later, waning stages of a bubble,” he added.

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