Upside HSCEI Offering Attractive Risk Reward As Southbound Flows To Drive Index Higher

With Chinese domestic investors increasingly expected to drive H-shares higher and volatilities sitting in the low 20s in short-and long-term maturities, investors are increasingly exploring upside strategies in the HSCEI. Listed flows in recent weeks in the index have been focused in Jun-17 and Jun-18 expiries, with strategists and salespeople noting that strategies have ranged from directional to vol plays.