Hong Kong’s markets were rattled late September after demonstrators gathered at the main square of government headquarters, calling for democratic elections for 2017.
“We would be quite happy buying, depending on the company,” Hugh Young, the Asia managing director at Aberdeen Asset Management, said in the Bloomberg article. “Most companies listed in Hong Kong have no business in Hong Kong.”
For instance, Bank of China, which makes up 5.6% of FXI’s holdings and 3.0% of GXC, generates over 80% of its revenue from the mainland. However, the company’s H-shares are valued at 0.8 times net asset, compared to a historical average of 1.5 times.
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Max Chen contributed to this article.