China Stock Option’s 2,800% Surge Shows Rush for Hedges
- With only four options contracts, investors call for more
- Regulators worried about leveraged bets have moved slowly
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In China’s $7.8 trillion ocean of equities, there are only four options contracts. It’s perhaps no wonder then that one of them, introduced just in December, saw extraordinary demand when Chinese markets were roiled by coronavirus fears on Feb. 3.