​Trade War: HSCEI Structured Product Fears Mount, As Index Nears Knock-in Levels

Fears over Asia’s HSCEI-linked structured product book are growing as the benchmark trades lower towards 10,000, increasing the risk many of them will hit their knock-in levels. If that occurs they will cease to exist, forcing investors into a long cash, or delta position and issuers to unwind their long downside put exposure.