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