Hong Kong Traders Get Vertigo as Stocks Whipsaw to Decade-HighBy
Hong Kong’s Hang Seng Index is back on top, but jitters are building.
The city’s stock traders may be forgiven for feeling a little nauseous after the benchmark equity gauge swung more than 3 percent in two sessions. Concern China will step up deleveraging sent the index tumbling 1.6 percent early in Monday trading before investor hunger for technology shares helped erase the loss by the close.
While the index is back at levels last seen in December 2007, volatility is also picking up -- with a 30-day measure of price swings near its highest for the year. Fluctuations in some of the top performers are getting extreme. Geely Automobile Holdings Ltd. has swung the most on the gauge in the past month - with daily moves in excess of 5 percent becoming common. Even staples aren’t immune: snack food maker Want Want China Holdings Ltd.’s volatility in the past 30 days is 35 percent, the third-highest on the gauge.