The China AI Options Anomaly

The New China AI Index

The FTSE China A50 Index is rapidly transforming from a traditional China index into a concentrated AI hardware trade, with mainland semiconductor and optical names now dominating both performance and positioning.

At the same time, the index is developing one of the world’s most extreme inverted call skews, with investors aggressively overpaying for far-OTM upside exposure. That anomaly may offer a rare opportunity to structure cheaper upside exposure via call spreads while the AI frenzy keeps building.