• Call volume most since February in iShares China Large-Cap ETF

• Buying also seen in bullish options for PDD Holdings ADRs

(Bloomberg) - Investors added to bets on a recovery in Chinese shares, snapping up bullish options on US-traded securities after the country’s central bank announced a massive stimulus package.

Shares surged in Asia trading after the People’s Bank of China and other financial officials announced measures to bolster the real estate sector and the broader economy. Those gains carried over to the US market, with exchange-traded funds tracking large-cap and internet stocks both up more than 8%, while PDD Holdings Inc.’s American depositary receipts gained as much as 11% and Alibaba Group Holding Ltd. rallied more than 7%.

In the options market, call volumes on the $4.3 billion iShares China Large-Cap ETF surged to the highest since February. One-month contracts betting on a 10% rise versus a 10% decline jumped to the highest premium since 2015, after languishing at a deep discount in early August. In the biggest trade of the day, an investor spent $6.75 million on options allowing them to purchase 15 million shares at $33 by mid-November, betting on at least a further 12% rally.

The buying — also seen in bullish options on Xtrackers Harvest CSI China A-Shares ETF and PDD Holdings ADRs, among others — spread to broader emerging-market funds. iShares MSCI Emerging Markets ETF call volume jumped to more than four times normal levels, led by investors buying $50 calls equivalent to more than 13 million shares expiring in December, about 11% above the current price.