In recent sessions, the Hang Seng is proven a bit vulnerable on reports of elevated fears regarding China’s shadow banking system. For example, Hong Kong’s benchmark index fell last Thursday “after Industrial and Commercial Bank of China, the world’s largest bank by assets, reportedly refused to ‘assume main responsibility’ to bail out investors in a $500 million investment product it helped push,” according to MarketWatch.
Lingering fears about the state of China’s banking system could pressure Hong Kong-listed shares despite the territory’s AAA credit rating.
Barron’s also reported that Zuluaf is bullish on the Market Vectors Gold Miners ETF (NYSEArca: GDX) and the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT). He also recommended shorting the iShares MSCI Turkey ETF (NYSEArca: TUR) in addition to EWH. [A Rare Opportunity With Gold Miners]
iShares MSCI Hong Kong ETF
