7 ms·

Serious question: How difficult is it to short the entire Shanghai Composite Index? Would it even be possible to place a trade?

PublicEnemy111 11y ago
I would buy put options instead of a naked short. I know it looks like an easy trade right now, but the Chinese govt. can be unpredictable. Even if you're right over a 6 month period, you can still blow up in the short term
- Magicstatic 11y ago
  Understood. Thank you
- TorKlingberg 11y ago
  Yes, be careful. Just two months ago HN:ers were asking how to get in on Chinese stocks as they were going up 10% every day: https://news.ycombinator.com/item?id=9471858 https://news.ycombinator.com/item?id=9471858
Mikeb85 11y ago
Good luck. The premium to borrow shares is very high right now. And with the Chinese government saying they're going to support the market, I wouldn't want to be short.
bedhead 11y ago
ASHR is the etf with the most liquidity.
- Magicstatic 11y ago
  Thank you for bringing this to my attention... second question: Why isn't everyone and their sister shorting the Asian market right now? Or are they?
  - bedhead 11y ago
    Very, very low liquidity for foreigners. I don't even know what the rules are for nationals. Maybe some hedge funds are doing some otc stuff but otherwise there just aren't any serious options.
  - singlefo 11y ago
    CHAD is a 1x inverse ETF that tracks the CSI 300 and has performed as expected in this environment. Note, if more and more people pile in to take advantage of the situation, it will almost certainly trade at a premium to NAV. This should not happen in an ETF to due the creation/redemption mechanism of ETFs, but the issuer is limiting creation units so it could trade like a closed end fund.
  - forgetsusername 11y ago
    >Why isn't everyone and their sister shorting the Asian market right now? Because every seller requires a buyer.
deleted 11y ago
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xux 11y ago
You can buy $YANG ETF. FTSE China Bear 3X Shares

PublicEnemy111 11y ago

I would buy put options instead of a naked short. I know it looks like an easy trade right now, but the Chinese govt. can be unpredictable. Even if you're right over a 6 month period, you can still blow up in the short term

Magicstatic 11y ago
Understood. Thank you
TorKlingberg 11y ago
Yes, be careful. Just two months ago HN:ers were asking how to get in on Chinese stocks as they were going up 10% every day: https://news.ycombinator.com/item?id=9471858 https://news.ycombinator.com/item?id=9471858

Mikeb85 11y ago

Good luck. The premium to borrow shares is very high right now. And with the Chinese government saying they're going to support the market, I wouldn't want to be short.

bedhead 11y ago

ASHR is the etf with the most liquidity.

Magicstatic 11y ago
Thank you for bringing this to my attention... second question: Why isn't everyone and their sister shorting the Asian market right now? Or are they?
- bedhead 11y ago
  Very, very low liquidity for foreigners. I don't even know what the rules are for nationals. Maybe some hedge funds are doing some otc stuff but otherwise there just aren't any serious options.
- singlefo 11y ago
  CHAD is a 1x inverse ETF that tracks the CSI 300 and has performed as expected in this environment. Note, if more and more people pile in to take advantage of the situation, it will almost certainly trade at a premium to NAV. This should not happen in an ETF to due the creation/redemption mechanism of ETFs, but the issuer is limiting creation units so it could trade like a closed end fund.
- forgetsusername 11y ago
  >Why isn't everyone and their sister shorting the Asian market right now? Because every seller requires a buyer.

deleted 11y ago

[deleted]

xux 11y ago

You can buy $YANG ETF. FTSE China Bear 3X Shares