is there any possibility to short the Shenzhen or ChiNext Index as an individual Investor? It seems as there are no options but two ETFs, namely the CSOP SZSE CHINEXT ETF-HKD and the ChinaAMC SME-ChiNext ETF. How would I be able to short these?

Thanks in advance

  • What country are you in? – user9822 Jun 6 '15 at 22:26
  • I am living in Germany. – Mathematica123 Jun 7 '15 at 7:38

From a global perspective there is the FTSE China 50 A shares index. So this index is the basis for futures contracts around the globe, and ETFs and other funds.

In the United States there is the YINN and YANG. These are both 3x bull/bear FTSE China A shares ETFs with options!!!!!! Isn't that amazing? The contracts are not liquid but you can get filled and with the expected volatility of that index, the spread is basically irrelevant! So nuts

  • But there are no options on the Shenzhen or ChiNext Index right? – Mathematica123 Jun 7 '15 at 7:51
  • I just found hkex.com.hk/eng/market/partcir/sehk/2015/Documents/CT03415E.pdf, saying the ETF is eligible for short selling. But where is an individual able to short this? – Mathematica123 Jun 7 '15 at 9:17
  • @Alex on the Hong Kong Stock Exchange. – CQM Jun 7 '15 at 10:30
  • Would there be a difference between YINN Puts and YANG Calls? – Mathematica123 Jun 7 '15 at 11:44
  • The regular YANG looks the most promising I think. Problem with the options is, that the longest ones already expire in Jan 2016. Another interesting Index would be the CSI 500. Are you aware of any ETFs or options on that? – Mathematica123 Jun 7 '15 at 13:05

I have also done a lot of research on this and unfortunately there seems little options out there in the ETF market. I would be nice to have an inverse play on 3147.HK. There is a lot of ETF's that track the broad market and the A'list mainland shares, but nothing for these overvalued bubble shares! Anyone got any advice to get in on this shorting opportunity?


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