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Hong Kong investors tempered their expectations of volatility on Tuesday, even as the bourse’s benchmark index gained more than 2 per cent.
The HSI Volatility Index, which tracks expectations of volatility over the next 30 days, was down 11.3 percentage points at 22.96 by late morning on Tuesday as it pulled further back from 30 mark touched on Friday following a global sell-off in equities.
The index, which is compiled using the same methodology as Cboe’s Vix volatility index, had been below 20 for most of the last 18 months before spiking last week.
Tuesday’s decrease by the gauge came as all market segments gained in Hong Kong on Tuesday, with the Hang Seng index adding 2.2 per cent and the Hang Seng China Enterprises index of Hong Kong-listed Chinese companies up 2.5 per cent.