Connect with us


Hong Kong’s biggest ETF resumes purchases of US-banned stocks




(Bloomberg) – The largest exchange-traded fund that tracks the Hang Seng Index will resume buying shares of Chinese companies included in a US investment ban, marking a U-turn for State Street Corp. after being criticized by the former Hong Kongs central bank. chief.

The $ 13 billion Hong Kong Tracker Fund, the city’s most actively traded ETF, said in a statement on Wednesday that it had reversed a decision announced two days earlier to stop making new investments in companies included in the US ban. The about-face boosted stocks in China Mobile Ltd., which rocked sharply over the past week amid confusion over how global investment funds would respond to the US order.

State Streets’ initial move caught the attention of the Hong Kong Monetary Authority and was criticized by former HKMA chief Joseph Yam in interviews with local media. U.S. banks and fund managers are responding to President Donald Trump’s ban on investing in companies known to be owned or controlled by the Chinese military.

State Street said in a separate statement Thursday that the ban does not apply because the Tracker Fund and its manager, State Street Global Advisors Asia, are considered non-U.S. Persons.

The Asia unit is able to continue to manage the fund portfolio to track the Hang Seng Index, including making new investments in decree-sanctioned securities, he said. The firm reiterated Wednesday that the Tracker Fund is no longer suitable for US investors.

The HKMA has taken note of the latest developments and will continue to monitor the matter closely, she said in an emailed statement.

Find out how Trump’s ban causes a pullout from Wall Street

China Mobile, one of three Chinese telecommunications operators included in Trump’s ban, climbed to 3.4% Thursday morning in Hong Kong. The stock has a 2.6% weight in the Hang Seng Index, according to data compiled by Bloomberg.

The Tracker Fund was created in 1999 to sell shares acquired by the Hong Kong government in its fight against speculators during the Asian financial crisis. It is now widely used by institutional investors as an indicator of the Hong Kong stock market or to hedge risks. Hang Seng Bank Ltd. provides a competing product that is roughly half the size of the State Street ETF.

Americans will not be banned from investing in Alibaba, Dow Jones reports

The issue threatened to disrupt Hong Kong’s pension industry, as eight of the city’s 18 mandatory provident fund scheme sponsors provide the Tracker Fund as an investment option, according to MPF Ratings Ltd. These include plans provided by Principal Trust Co. Ltd., Fidelity and Invesco Ltd., according to the website.

MSCI Inc. and S&P Dow Jones announced last week that they would abandon Hong Kong-traded shares of China Mobile, China Telecom Corp. and China Unicom Hong Kong Ltd. benchmarks. This prompted index funds to unwind their short-term positions, pushing the trading volume of stocks to 18 times the daily average for the previous three months.

BlackRock Inc. has also reduced its holdings and plans to continue selling, a person familiar with the matter said this week. The world’s largest fund manager has an ETF that tracks the Hang Seng.

The Vanguard group said this week that it had liquidated all of its stakes in Chinese companies sanctioned by the United States.

(Updates with the HKMA statement in the sixth paragraph)

2021 Bloomberg LP

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

picture credit


to request, modification Contact us at Here or [email protected]