Options market in China
- Thread starter botpro
- Start date
Just curious when Chinese stocks and options will be open for foreigners,
as most western exchanges are open for foreigners of course incl. for the Chinese.
AFAIK there are no options (yet) listed for domestic trading. FF began in 2010. They were to roll-out options on the CSI in Feb of 2015. I don't think they're trading. Feasibly, it will be years before shops like IB have access to the futures. The HKFE has futures on the "120" index, but I don't think they have any appreciable OI.
The share/index options will never be available to US accounts, unless there is legislation passed by Congress.
The share/index options will never be available to US accounts, unless there is legislation passed by Congress.
By 2019 Aug 1st
Total 7 options traded in China market
SSE:
50ETF options.
DCE:
soybean meal futures options.
corn futures options
CZCE:
white sugar futures options
cotton futures options
SHFE:
copper futures options
natural rubber futures options
and actually people like trading options in China, especially for 50ETF options
https://www.gulf-times.com/story/492715/China-s-passion-for-trading-lives-on-in-options-ma
https://www.reuters.com/article/us-...er-prompting-regulator-warnings-idUSKCN1QW18G
and there's a options quant trading platform in China
https://quant.pobo.net.cn
Total 7 options traded in China market
SSE:
50ETF options.
DCE:
soybean meal futures options.
corn futures options
CZCE:
white sugar futures options
cotton futures options
SHFE:
copper futures options
natural rubber futures options
and actually people like trading options in China, especially for 50ETF options
https://www.gulf-times.com/story/492715/China-s-passion-for-trading-lives-on-in-options-ma
https://www.reuters.com/article/us-...er-prompting-regulator-warnings-idUSKCN1QW18G
and there's a options quant trading platform in China
https://quant.pobo.net.cn
Last edited:
I am currently trading the 50ETF options, what do you want to know? In terms of brokerages available to foreign customers I have no idea, I reside in China so I have done everything through local brokers. If you want info about the market situation then maybe I can tell you a couple things.
How efficient? Volume? BSM? Greeks?
There was a group of investors out of China that bid on the Chicago Stock Exchange. Deal kicked around for over a year and the SEC finally killed it over staff recommendation. Part of the proposal included a new options exchange in Chongqing. Politics - it even became a campaign/debates issue.
https://www.reuters.com/article/us-...e-sale-to-china-based-investors-idUSKCN1G000H
https://www.reuters.com/article/us-...e-sale-to-china-based-investors-idUSKCN1G000H
ok, here a few facts:
-one options contract commands 10000 shares instead of 100, of course the value per share is quite low, around 0.35 USD per share on the 50ETF
-in terms of liquidity, I would say its very good, the spreads are really tight. At the ATM level the spread is usually .0001, it gets worse if you move far ITM or on longer expiration dates, but overall its very reasonable
-fees around 2 usd per contract. If I were a bigger player I could have less than 1 USD.
-only 1 month/2months/4months/6months contracts available
-the underlying cannot be shorted by retail investors, and there is a 10% cap on the daily movement. Until this moment, calls have been priced richer than puts, and most of the risk/explosive moves have been to the upside. I would say that there is an implicit guarantee that state funds will start buying in case of a crash that is reflected in the options market.