Traders flock to bullish Chinese stock bets for AI alternative

Investors seeking to diversify beyond crowded AI trades in Korea and Japan are increasingly seizing on Chinese equity derivatives. Trading desks from Barclays Plc to UBS Group AG are seeing rising client demand for bullish options and swap contracts tied to China’s CSI indexes in recent weeks. Meanwhile, more strategists are recommending derivative trades to position for gains, particularly in the mid- and small-cap space. Key drivers for Chinese stocks include ongoing capital?market reforms that support a gradual bull market, advances in self?reliant technology and an improving earnings outlook across hardware sectors, according to BNP Paribas SA and Bank of…