Another similar option is iShares MSCI Hong Kong (NYSEArca: EWH). The tracking index is different from the often-cited Hang Seng Index, although they are highly correlated, notes Morningstar analyst Patricia Oey. Hong Kong is a special administrative region of China along with Macau.
“An investment in EWH is an obvious a play on economic growth in China. However, it is important for investors to understand how this fund is exposed to China,” Oey writes in a profile of the ETF. “First of all, with its holdings in property companies, banks, and utilities, EWH is exposed to macroeconomic trends in Hong Kong, which is now in large part driven by China. Secondly, many Hong Kong firms have operations in China.”
iShares MSCI Hong Kong (NYSEArca: EWH)
Max Chen contributed to this article.