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

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 53%

France Nouvelles Nouvelles

France Dernières Nouvelles,France Actualités

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

© Reuters. FILE PHOTO: An investor watches a board showing stock information at a brokerage office in Beijing, China October 8, 2018. REUTERS/Jason Lee/File PhotoSHANGHAI - 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.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 450. in FR
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stock market today: World shares mixed after China pledges more support for slowing economyWorld shares are mixed after China pledged more spending to counter its economic slowdown. Benchmarks fell in Paris, Frankfurt, Sydney and Seoul but rose in London, Tokyo and Hong Kong. U.S. futures were mixed and oil prices turned higher. On Tuesday, the S&P 500 rose 0.7% and the Dow gained 0.6%. The Nasdaq composite climbed 0.9%.
La source: AP - 🏆 728. / 51 Lire la suite »

China's big policy moves draw cautious investors back to beat-down stock marketChina's big policy moves draw cautious investors back to beat-down stock market
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Stock market today: World shares mixed after China pledges more support for slowing economyWorld shares are mixed after China pledged more spending to counter its economic slowdown.
La source: ksatnews - 🏆 442. / 53 Lire la suite »

Stock market today: World shares mixed after China pledges more support for slowing economyWorld shares are mixed after China pledged more spending to counter its economic slowdown.
La source: wjxt4 - 🏆 246. / 63 Lire la suite »