Investors from China's regional cities, tired of losing money on local stocks, are turning their attention to structured products in the hope that derivatives can help them beat the markets.
Chinese stocks have been losing value for the past 15 months the H-share index in Hong Kong is down two-thirds from its peak in October 2007. During the run-up to that peak, investors in China had little interest in buying products with miserly single-digit coupons when they could get much bigger returns from investing in initial public offerings.
But investors are more open-minded now that returns are harder to come by. Stocks are a dead loss and bond yields, which enjoyed something of a bull-run...
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