Options market in China

Discussion in 'Options' started by botpro, Jan 15, 2016.

  1. botpro

    botpro

    Hi,
    what's the current status of options trading in China?
    How many instruments (stocks, indices, etc.) have already options there?
     
  2. destriero

    destriero

    You don't have access to their domestic shares; so what's the concern about options?
     
  3. botpro

    botpro

    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.
     
  4. destriero

    destriero

    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.
     
  5. optquant

    optquant

    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
     
    Last edited: Aug 1, 2019
  6. Baozi

    Baozi

    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.
     
  7. ironchef

    ironchef

    How efficient? Volume? BSM? Greeks?
     
  8. ETJ

    ETJ

  9. optquant

    optquant

    if you are qualified as QFII or WOFE investors in China, you can trade exchange listed options in China , I heard
     
  10. Baozi

    Baozi

    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.
     
    #10     Aug 2, 2019