The China-focused index, which is commonly tracked by autocallable notes, is inching closer into short Vega where hedging costs can pile up.

The Hang Seng China Enterprises Index (HSCEI) settled 12.5% higher at 6,889 points today (16 March) after falling to 6,134 points a day before, which represented a 25.1% decline year-to-date or down 38.2% from the 11,144 points year-on-year. The index hit a 10-year low on 15 March before a mild rebound threatening knock-in barriers across the South Korean market and beyond.     We can expect the HSCEI to be the worst performer and to drive the performance of all those autocalls now -