Chinese stocks insurance costs down amid upswing

The cost of insuring Chinese stock losses compared to US shares fell to a one-year low amid gathering signs that China’s economy is recovering, Bloomberg reported. The AlphaShares Chinese Volatility Index, compiled from options on Hong Kong listed companies, traded for 18.61 on October 31. The premium is 1% higher than the Chicago Board Options Exchange Volatility Index, the smallest differential since September 2011. The difference between the two figures was up to 1.43% on September 9. The largest Chinese exchange-traded fund in the US, iShares FTSE China 25 Index Fund, reached a six-month high last week. The value of the renminbi rose to a 19-year high on October 29. Hong Kong monetary bodies sought to halt dollar gains as investment in Chinese equity funds increased to a a five-year high in the week from October 17, according to EPFR Global data.