13th May 2019 - Vanda PU: Chinese Investors Remain Surprisingly Bullish Despite The Sell-Off

- Institutional positioning in Chinese equities appears to have washed out. - Foreigners don't move the needle in China. - Retail leverage has not dropped relative to market cap, suggesting that retail investors might have been buying during weakness. - Open interest in equity calls has skyrocketed despite last week's sell-off. - FX traders seem sanguine about USD/CNY, the weighted average call strike is at 6.96. Traders think that a deal will be signed or that PBOC will defend the currency. - VT funds will be forced sellers as short-term realized vol rises.