Korea retail flows push China volatility to a record low

Volatility is trading at low levels on HSCEI despite China fears


Korean retail investors buying autocallable structured products on the Hang Seng China Enterprises Index (HSCEI) are pushing China volatility down to record lows despite a China slowdown and increased risk on the horizon.

Structured product issuance has long been a driver of Asia volatility with retail investors selling puts embedded within equity-linked autocallable structures to dealers to collect extra premium and juice up returns. However, an increase in Korean investors selling puts on the

To continue reading...

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 indvidual account here: