Investors Tap HK ETF Call Spreads, Upside Barrier Structures

​Hedge funds and institutional investors are buying call spreads on the iShares FTSE A50 China Index ETF (2823), reflecting increasing bullish sentiment in A-shares over the short-term. High net worth individuals and private banks, meanwhile, have been active in structured products with an embedded barrier option on the upside—up-and-out calls—and selling a put on the downside.