China to Introduce Credit Default Swaps by End of Year

China intends to introduce Credit Default Swaps by the end the year, however no naked CDS positions will be permitted; investors will have to own the underlying instrument in order to have a position in a CDS, according to the Secretary General of th

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ICBC Convertible Bond Issue Oversubscribed 20X

ICBC CB (113002) lists today. CNY500 billion subscribed to the CNY25 billion issue. While priced at par, local brokers say it should start trading somewhere between 107 and 115.

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CSI 300 Component Analysis

% of CSI 300 index

Top 100 stocks = 69.82%

Top 150 stocks = 81.52%

Top 200 stocks = 89.65%

Top 250 stocks = 95.95%

31 Finance and Insurance companies = 30.98%

29 Mining companies = 10.36%

26 Real Estate companies = 6.33%

13 Wh

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Just a Tad Popular – Callable Bull Bear Contracts (CBBCs) in HK

The title is in jest, as last week alone, 178 CBBCs were listed on the HKEx. Their leverage and very low absolute price is what makes these instruments attractive to punters, as banks show little signs of slowing their issuance.

11 b

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Shanghai CSI 300 Futures Index Arbitrage

Apart from regulatory issues and the ability to get access to sufficient QFII ‘A’ share quota, on the face of it there seems to be good edge in the Shanghai futures index against stock index arbitrage. Much like HSI futures 20 years ago, there’s freq

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