Hong Kong ETF volume hits 5-year high
Trading in the largest ETF tracking Hong Kong stocks jumped to a five-year high as protests in the city intensified.
Even countries with solid prospects for growth and debt financing haven’t been immune to the selloff.June 20
The largest allocation to the iShares fund was a block of 10 million shares worth $251 million after the market closed last week.June 25
The iShares MSCI Hong Kong ETF (EWH) saw its volume soar to 25 million shares on Tuesday in New York — the most since August 2014, according to data compiled by Bloomberg. Since demonstrations escalated in June, the $1.4 billion fund has lost about 40% of its assets.
After protesters brought the city’s airport to a standstill on Monday, investors grew increasingly alarmed by the fallout from 10 weeks of anti-government rallies that showed no sign of letting up.
The short-term worry is that Hong Kong’s economy is headed for a recession as local turmoil combines with the U.S.-China trade war to pummel retail sales, weigh on real estate prices and sink the city’s $4.9 trillion stock market.
After hitting the lowest level since January, EWH climbed on Tuesday as the Trump administration de-escalated its dispute with China — sparking demand for risk assets that had been under pressure. — Additional reporting by Tom Lagerman