Korean banks halt HSCEI-linked sales, implied vols unscathed by Vega bids

KB Kookmin Bank and Hana Bank announced earlier this month a temporary suspension of sales of HSCEI-linked ELS products to contain the potential for investor losses as the Chinese benchmark continues to decline. KB Kookmin and Hana join NH Nonghyup Bank ceased sales of HSCEI-linked ELS from last month, as well as Shinhan Woori and NH Nonghyup which decided to halt sales of ELS products linked to the HSCEI at the end of 2022. The HSCEI has been in negative territory throughout 2023 putting hund