Tech meltdown: China's $1.9-trillion stock rout has no end in sight

Chinese tech shares are particularly vulnerable in an environment where investors are shunning risk

The downward spiral of Chinese tech stocks shows no signs of abating, with alarms now ringing in the options market. Even after a drop in market value of almost $2 trillion, investors are seeking hedges against further losses in the Hang Seng Tech Index. Bearish options on the benchmark are trading near a record premium above bullish calls as the gauge plunged this week, data compiled by Bloomberg shows.

The tech index has plunged 61 per cent from its peak last year. The Nasdaq Golden Dragon China Index of US-traded stocks has fared even worse, down 68 per cent, and