Traders Bet on China Bank Rebound Amid Economic Revival
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Options traders are turning bullish on China’s biggest lenders, betting that a revival in Asia’s largest economy and government growth measures will lift the shares from near record-low valuations.
Calls with an exercise price 10 percent above Industrial & Commercial Bank of China Ltd., the nation’s biggest lender, cost 3.7 points more than puts betting on a 10 percent slide at the end of last week, according to three-month options data compiled by Bloomberg. The ratio jumped to 4.3 on June 5, the highest since March 2012. The measure for China Construction Bank Corp., the second-largest lender, climbed to 3.7 on June 4, the highest since April 2011.