Hong Kong’s exchange traded funds (ETFs) might be hurting some from a delay to full democracy, but it hasn’t snuffed out the country’s democratic spirit.

Just look at Sunday’s elections: pro-democracy parties won 23 seats in the 60-member Legislative Council elections. Although that’s down from 25 after the last election in 2004, the losses only came from the ranks of special-interest legislators, reports the Wall Street Journal Asia.

Voter turnout was low – 45% – but the pro-democracy candidates did better than expected and retained a critical veto power, says Carl Delfeld for ETF Xray.

Voters are frustrated with the current government’s economic record. Just before Sunday’s vote, a public opinion poll found that 87% of voters said their decision would be driven by “livelihood” issues such as housing and education. Seventy-seven percent said they were focusing on economic policies.

Inflation is running 6.3% and gross domestic product (GDP) growth slowed to 4.2% in the second quarter, down sharply from 7.3% in the first.

ETFs that are related:

• NETS Hang Seng Index (HKG), down 17.5% since April 16 inception
• iShares MSCI Hong Kong Index (EWH), down 31.2% year-to-date

Tags: Asia, Emerging Markets, EWH, HKG, Hong Kong