CBBCs are investment products with a leverage effect that can track the performance of related asset prices with relatively little funds.
CBBCs have set expiry date, exercise price, and recovery price when they are issued. Once the relevant asset reaches the recovery price, it will be forcibly recovered.
CBBCs are divided into two categories based on residual value:
1. No surplus value (called Type N)
2. There may be residual value (referred to as Type R), all currently listed CBBCs are Type R.
CBBCs can be divided into: Bull Contracts and Bear Contracts
1. If you are optimistic about the market outlook, you can invest in bull contracts;
2. If you are short on the market outlook, you can invest in bear contracts.
Disclaimer
The above is only an introduction to the CBBCs and does not constitute investment advice. You need to be cautious about investment risks and think independently.