Hong Kong ETF Volume Soars to Five-Year High as Crisis Deepens
Hong Kong ETF Turnover Set for Highest Since 2014 Amid Turmoil
(Bloomberg) -- Trading in the largest exchange-traded fund tracking Hong Kong stocks jumped to a five-year high as protests in the city intensified.
The iShares MSCI Hong Kong ETF, or 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.
--With assistance from Tom Lagerman.
To contact the reporter on this story: Carolina Wilson in New York City at cwilson166@bloomberg.net
To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Rita Nazareth, Rachel Evans
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