Hong Kong Equity

Hong Kong equity mutual funds and ETFs own securities listed on the... Hong Kong equity mutual funds and ETFs own securities listed on the stock exchange of Hong Kong, known as the Hang Seng. They can be actively or passively managed, and may, depending on their mandate, leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to Hong Kong equities because the region is highly developed. Per capita GDP in 2022 was nearly US$49,000. Hong Kong has long been a major world financial centre. Now a Special Administrative Region (SAR) of China, Hong Kong’s economic fortunes are more closely tied to the mainland. Many companies listed on the Hang Seng are cross-listed from the Shanghai exchange, such as China Mobile, Tencent, and Alibaba. China’s control over Hong Kong introduces new risks for potential investors in Hong Kong Equity mutual funds and ETFs. Geopolitical tensions between the West and China, for instance, could threaten the investments of Westerners in Hang Seng stocks. Meanwhile, Hong Kong does not have the same freedom to develop as it did pre-takeover. As a result, these funds may only be appropriate for aggressive investors willing to take on significantly more risk in search of higher returns. Last Updated: 04/19/2024 View more View less

Hong Kong equity mutual funds and ETFs own securities listed on the stock exchange of Hong Kong, known as the Hang Seng. They can be actively or passively managed, and may, depending on... Hong Kong equity mutual funds and ETFs own securities listed on the stock exchange of Hong Kong, known as the Hang Seng. They can be actively or passively managed, and may, depending on their mandate, leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to Hong Kong equities because the region is highly developed. Per capita GDP in 2022 was nearly US$49,000. Hong Kong has long been a major world financial centre. Now a Special Administrative Region (SAR) of China, Hong Kong’s economic fortunes are more closely tied to the mainland. Many companies listed on the Hang Seng are cross-listed from the Shanghai exchange, such as China Mobile, Tencent, and Alibaba. China’s control over Hong Kong introduces new risks for potential investors in Hong Kong Equity mutual funds and ETFs. Geopolitical tensions between the West and China, for instance, could threaten the investments of Westerners in Hang Seng stocks. Meanwhile, Hong Kong does not have the same freedom to develop as it did pre-takeover. As a result, these funds may only be appropriate for aggressive investors willing to take on significantly more risk in search of higher returns. Last Updated: 04/19/2024 View more View less