The volatility in this market continues to decrease, the daily range has returned to comparable before August 2007, when the money from mainland China exploded to enter hong kong market due to a promising policy allowing chinese citizen to invest in hong kong stock market. but that policy did not materialize at last , and the china's mainland stock market has drop 50% from october 2007. Guess many hot money from mainland china had to be withdrawn due to the above reason as well as that the china's central bank tightened the cash bag to fight inflation and over-heated economy as the mainland money pulled out of HSI market, some old market patterns began to take effect more and more frequently. i learned many long-time players in this market shyed away in the past 8 month, maybe it is time to consider make a comeback, your familiar HSI game has been back !
And the open interest is steadily decreasing, suggesting the market is returning to the situation of 2006. Time to reallocate capital and cherish the 2006 models.