​New China Index Finds D1 Interest, Macro Shift To Drive Volume

Despite only being launched months ago, the S&P New China Sectors Index is already being accessed by wealth management clients through delta one (notes and swaps) or outperformance strategies vs. HSCEI Index (structured notes); Institutional investors (both fast and real money) are clearly looking at this divergence between New and Old China. A shift in sentiment towards Chinese macro economy will likely drive additional flow to the index as, apart from the week following the Brexit vote, Hong Kong and China have largely suffered from equity fund outflows in recent months.