China Traders Born in Bull Market Refuse to Believe It’s Ending
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The biggest tumble in Chinese stocks since 2008 has done nothing to shake the resolve of bulls in the country’s options market, where bets on a rally have never been more popular.
Bullish wagers on the China 50 ETF have increased to the most expensive level versus bearish ones since the contracts’ debut in February marked the start of equity-linked options trading in China. The ETF, which holds some of the biggest stocks in Shanghai, has dropped 13 percent from its June 8 high after surging 133 percent in the previous 12 months.