NEW YORK, June 14 Reuters Options on several U.S.listed Chinese exchange traded funds have drawn bullish flows in recent days as some traders take advantage of a slump in bullish sentiment on Chinese companies to place contrarian upside bets.

The bullish trades occur as investors, who started this year with an upbeat view on China, betting on a strong economic recovery as the world39;s secondlargest economy emerged from pandemic disruptions, have been largely disappointed amid softening economic indicators.

Shares of the two largest U.S.listed Chinese ETFs the iShares MSCI China ETF and the iShares TrustChina LargeCap ETF, which between them have about 13 billion in assets, have slipped 16 and 14, respectively, from their January highs. Another China ETF, KraneShares CSI China Internet ETF , which tracks overseaslisted Chinese internet companies, is down 19 from its January high.

On Wednesday, KWEB options volume jumped to 224,000 contracts, or about three times its average daily volume, boosted by a large bullish trade.

A trader bought about 40,000 of KWEB call options that would be profitable if the shares climbed above 35, or nearly 20 above its current level, by midJanuary 2024.

Call options convey the right to buy shares at a fixed price in the future and are usually bought to express a bullish view.

Wednesday39;s large trade follows other bullish trades in Chinese ETFs in recent sessions, including a purchase of 60,000 June 30th 29 call options on China…