A Good Time to Invest In Hong Kong stocks ?
Updated: Aug 21, 2019
Mass protests in Hong Kong have dominated news headlines in the last few months, on top of negative news regarding global economic growth. As a result, many stocks in the country have pulled back from their recent peaks.
If you are a beginner investor who have a longer-term view, but not familiar with specific Hong Kong stocks, perhaps you can consider investing into the MSCI Hong Kong index or Hang Seng Index. Both indices have fallen more than 10 percent in the last 2 months. We like to invest in country or region-specific ETFs (exchange traded funds) and will explain the benefits on another day. Suffice to say, these are cost-efficient tools to gain diversification benefits.
While near-term economic & political concerns may not go away immediately, we believe that the US- China trade war would not last forever. Secondly, given the resilience and pragmatism of Hong Kong people, it is likely that they can get back on their feet, as past histories of SARS and Financial Crisis showed.
Meanwhile, global central banks have turned dovish. This means that hot monies looking for yield would eventually flow back into familiar equities or higher-yielding instruments.
One way to play Hong Kong's index is via the iShares MSCI Hong Kong ETF (Bloomberg Code: EWH US), which tracks the MSCI Hong Kong index. Components of the index can be found on MSCI's web page. Another way to access Hong Kong shares is via Hang Seng index ETF (Bloomberg Code: 2833 HK). The screenshots of their top components are provided for your easy reference below.
Alternatively, you can sign up as a free member on our website, and we will occasionally share our findings of gems from our rankings tools.
Note: The article above is for information and sharing purposes only. It does not represent any financial advice.