Macro Tsimmis

intelligently hedged investment

BUY iShares MSCI Hong Kong Index (EWH)

Posted by intelledgement on Tue, 02 Jan 07

The reasoning for taking this position is presented in our earlier writeup on FXI. FXI consists exclusively of mainland companies—about a third of them government-owned—that trade on the Hong Kong market. EWH adds Hong Kong-based companies to the mix. All the reasons for investing in China apply to the companies based in Hong Kong…plus management teams with more capitalist-system experience than their mainland counterparts and more access to the China market than their foreign-based company counterparts are likely to have a persistent competitive edge for the next several years.

The objective of the iShares MSCI Hong Kong Index ETF is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Hong Kong market, as measured by the MSCI Hong Kong Index. The ETF has been operating since March 1996. The market value of the trust is US$1.0B and on average 1.5MM shares are traded each day.

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