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
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.