'Snowball' derivatives feed China's stock market avalanche

January 23, 2024--China's plunging stock market is leading to losses on billions of dollars worth of derivatives linked to the country's equity indexes, forcing a vicious cycle of selling in stocks and futures contracts as market participants manage their risks.

Stock markets in Hong Kong and in mainland China plunged on Monday, extending a long spell of weakness driven by an exit of foreign investors alarmed by China's wobbly economy and a lack of stimulus measures.

OECD Asia Capital Markets Report 2025

November 6, 2025-Introduction
Since the early 2000s,Asia has become a major engine of global growth,fuelled by industrialisation,technological innovation and deeper integration into global markets. As a result,the region today accounts for nearly a third of global GDP and 55% of the world's listed companies.