The Shainghai and Hong Kong markets are among the worst performing areas of the globe this year after a depreciation in the yuan currency and a slowdown in the world’s second-largest economy drove away risk seekers.
Related: Big China ETFs Draw Bearish Bets
China ETF traders who are wary of ongoing weakness in the Chinese markets can also look to inverse or bearish options to hedge their positions. For instance, the Direxion Daily FTSE China Bear 3X Shares (NYSEArca: YANG) takes three times the inverse or -300% daily performance of Chinese stocks. Additionally, the Direxion Daily CSI 300 China A Share Bear 1x Shares (NYSEArca: CHAD) takes the inverse exposure to Chinese A-shares.
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iShares China Large-Cap ETF