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China’s $1.9 Trillion Stock Rout Has No End in Sight

  • Investors increasingly seeking tech hedges in options market
  • Index of U.S.-listed Chinese stocks has fallen almost 70%

The downward spiral of Chinese tech stocks shows no signs of abating, with alarms now ringing in the options market.

Even after a drop in market value of almost $2 trillion, investors are seeking hedges against further losses in the Hang Seng Tech Index. Bearish options on the benchmark are trading near a record premium above bullish calls as the gauge plunged this week, data compiled by Bloomberg shows.