As China's stock market steadies, risks around 'Snowball' derivatives recede

SHANGHAI, Oct 27 - China's efforts this week to put a floor under its tumbling stock market have eased market concerns around a potential implosion of an estimated $27 billion of"Snowball" structured products and other forms of leveraged bets.

It gained popularity in 2021, as the pandemic and weak economy forced brokerages and investors to get into innovative structured products betting on market volatility. The investment bank estimated the average knock-in level for Snowball products tied to CSI500 is 4,865. The index seemed to be closing in on that level on Monday, when it hit a low of 5,269 after losses of 18% since early April. It has since rebounded.

While worries over a major liquidation of stocks triggered by Snowball may have receded, analysts say there is still danger in a lot of other structured products actively traded in China.

مصر أحدث الأخبار, مصر عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

As China's stock market steadies, risks around 'Snowball' derivatives recedeExplore stories from Atlantic Canada.
مصدر: SaltWire Network - 🏆 45. / 63 اقرأ أكثر »

Stock market news today: Nasdaq leads stock slide as Big Tech comes under pressureStocks are struggling under the weight of disappointing Big Tech earnings and rising bond yields.
مصدر: YahooFinanceCA - 🏆 47. / 63 اقرأ أكثر »

China Life Profit Falls as Stock Market Declines Hurt ReturnsChina Life Insurance Co., the nation’s largest life insurer, said profit fell 36% in the first nine months of this year as stock-market declines and low bond yields weighed on investment returns.
مصدر: BNNBloomberg - 🏆 83. / 50 اقرأ أكثر »

Global Market Scan: Temperature of western Europe’s housing market drops - constructconnect.comCanada's construction news
مصدر: DCN_Canada - 🏆 17. / 74 اقرأ أكثر »