This article investigates the predictive power of the put-call ratios (PCRs) implied by China€s 50ETF option on the 50ETF return and its variance. By using simple partitional regressions, the relationship between the PCR and the 50ETF return is tested. This study conducts tests on their robustness based on different horizons, market conditions, moneyness status and time to maturity. Empirical results indicate that the PCR is a strong forward-looking indicator of the variance of 50ETF returns. A