Morningstar Rating

ETF Research and Analysis

by Patricia Oey
Suitability
IShares MSCI Hong Kong Index provides broad exposure to Hong Kong equities. Most Hong Kong companies have operations in China, so this fund can be used to gain exposure to growth trends on the Mainland. Hong Kong is also   Read more 

Bull Case

Hong Kong companies, with strong exposure to China, are positioned to benefit from growth in China in the medium term.
Hong Kong has well-developed financial and legal systems. Investing in Hong Kong-domiciled companies (as opposed to investing in China-domiciled companies) may be a less volatile way to gain exposure to economic growth in China.
Many of the firms in this fund are high-quality companies. Read more 

Bear Case

The Hong Kong economy and stock market can be significantly affected by decisions by the Chinese authorities regarding cross-border capital controls and China's economic development.
Property companies face an eventual rise in interest rates and uncertainty regarding government regulations over the Chinese property sector
Over the long run, Hong Kong's standing as a key regional financial center may diminish as China liberalizes its capital markets. Read more 

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