News Summary

• It’s not the right question to ask why we bought snowballs, but why the index is performing like this.”Despite their small size relative to the Chinese equity market as a whole, analysts said the wipeout for some snowball holders could exacerbate the country’s stock rout..
• If not, you should buy a snowball as a safe bet,” said the head of a medium-sized Chinese brokerage that sells snowballs.Stephanie Liu, a 34-year-old clerk working in Shanghai, clubbed together with friends to buy Rmb1mn worth of snowballs in June 2022..
• Zhao said there had been a “wave” of snowballs “knocked in” when some Chinese stocks sank to a five-year low this week..
• Brokerages that sell the contracts typically buy stock futures to hedge their position..