iShares MSCI Hong Kong IndexEWH

Morningstar Rating

ETF Research and Analysis

by Patricia Oey

Suitability
IShares MSCI Hong Kong Index EWH 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 Read more

Bull Case

Hong Kong companies, with strong exposure to China, are well positioned to benefit from strong GDP 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. 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.

Hong Kong's economy is highly dependent on international trade. Slowing global growth will have a negative impact on many of the companies in this fund.

Property companies may be negatively affected by government plans to increase land supply, which may put pressure on property prices. Read more