Shanghai ETF option volatility spikes on China market fears

A crackdown on margin financing strengthens bearish sentiment

China shares

Implied volatility of the Shanghai Stock Exchange (SSE) 50 exchange-traded fund (ETF) options jumped to a record high this week on fears the recent rise in China equity values is set to reverse, combined with a further crackdown by Chinese regulators on margin trading, according to market participants.

The implied volatility of SSE 50 ETF options saw consecutive jumps during the first three trading days this week. Figures from China Securities Index show that the 30-day weighted average implied

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