Goldman Sachs has cancelled its bearish bets against the shares of the Industrial and Commercial Bank of China after the bank’s share price soared in recent weeks, according to the Financial Times.
Goldman’s Asia division will use call options-which allow issuers to buy back products before their final maturity-on structured products that were linked to the Hong Kong shares of ICBC, according to an exchange filing.
ICBC, China’s largest bank in asset terms, has seen its share price rise 16% in 2018. The index of Hong Kong-listed Chinese mainland banks has risen 22% over the same period. The banks’ strong performance is being attributed to China’s fast economic growth and investors’ diminishing fears over asset quality, the FT suggests.