Chinese snowball revenues melt away

Securities firms see falling revenues in the index-linked trades, but struggle to replace their profitability

China-snowball-revenues-melt-away

The structured products known as snowballs were once a star earner for Chinese securities houses. But sales of the autocallables fell by around two-thirds last year, as a bearish equities market stemmed new investment inflows.

Investors are now exploring alternatives such as selling single-name options, but the market is limited in terms of who can offer these products and hedging is far less capital efficient for securities firms.

“It’s very difficult to find replacements for snowballs,” says

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here