Not to much going on.
Hong Kong ETF can be a thing...
or nothing at all.
Hong Kong ETF can be a thing...
or nothing at all.
According to information circulating on the internet, it seems that mainland Chinese will not be able to invest in HK ETFs - and I doubt that the market of around $50 billion can change anything significantly. However, the Chinese are resourceful people, maybe they will activate a lot of their relatives living in HK to trade for them.
“A lot of people are banking on wealthy Chinese locals, but, officially, you cannot buy this ETF if you're a mainland Chinese investor,” said Eric Balchunas, a senior ETF analyst at Bloomberg. That’s because it must be listed on something called the Stock Connect, which allows Chinese citizens to invest in certain Hong Kong ETFs, and vice versa.
“This will never be available there,” says Balchunas.
As most foreign investors don’t have access to U.S. ETFs, Balchunas sees the most action coming from the likes of domestic retail investors, meaning inflows likely will pale in comparison to those seen in the American market. That’s because Hong Kong’s ETF market was worth about $50 billion—compared with some $8.87 trillion in the U.S.—at the end of the first quarter.
“This will never be available there,” says Balchunas.
As most foreign investors don’t have access to U.S. ETFs, Balchunas sees the most action coming from the likes of domestic retail investors, meaning inflows likely will pale in comparison to those seen in the American market. That’s because Hong Kong’s ETF market was worth about $50 billion—compared with some $8.87 trillion in the U.S.—at the end of the first quarter.
