🚨 HSI-CXY sees over 36M net bought as China cuts lending rates by more than expected
• This morning, China cut its benchmark lending rates, lowering the one-year loan prime rate (LPR) to 3.10% from 3.35%, while the five-year LPR was reduced to 3.60% from 3.85%. The 25-bps rate cut was more than an expected 20-bps rate cut.
• As of the lunch break, the China-related Hang Seng Index (HSI) October futures are trading 0.8% lower, at 20,703.
• Call HSI-CXY was actively traded this morning, with over 67M changing hands, and saw over 36M units net bought by investors as its price fell over 18%. Further, put HSI-HWP also saw some positions taking, with 4.7M units net bought, while HSI-CYC and HSI-CXP saw a combined net total bought of 7.5M units.
• Investors who wish to gain leveraged exposure to the HSI may do so via our focus warrants.
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