China's stock markets might be booming, but Bloomberg reports there is now an easier way to wager on the fall everyone says is coming:
- Futures on the small-cap CSI 500 Index started trading on Thursday
- Gives investors a cheaper way to wager on declines in shares valued at more than twice the level of the benchmark Shanghai Composite Index
- The CSI 500 has surged 47 percent this year, versus a 26 percent gain for the Shanghai measure
- "Interest should be high," Hao Hong, the chief China strategist at Bocom International in Hong Kong, said in e-mailed comments on Wednesday. "It's a way to lock in gains from high-valuation stocks, as many of these stocks do not have liquidity when there is a selling stampede."
Never mind the investors, it should be a good trading vehicle. I don't know what the liquidity will be like though. Yikes.