Reported about 1 year ago
Options traders in Hong Kong are showing little interest in hedging Chinese stocks, with outstanding contracts on the Hang Seng China Enterprises Index at a 12-year low. The cost of protecting against swings in the next three months is near a three-year low, reflecting a lack of urgency among traders as the market has declined more than 8% since its peak in May. Despite an upcoming meeting of Chinese Communist Party leaders, traders anticipate no major market-shaking reforms, leading to a wait-and-see approach in the options market.
Source: YAHOO