Hong Kong Protests Could be Potential “Black Swan” for Markets

“That is not going to be a positive in terms of negotiating a trade deal between the United States and China, its not going to be a positive at all for the global markets,” said Eisman.

For investors sensing an opportunity in Hong Kong-focused exchange-traded funds (ETFs), they can look to funds like the SPDR Solactive Hong Kong ETF (NYSEArca: ZHOK), Franklin FTSE Hong Kong ETF (NYSEArca: FLHK) and iShares MSCI Hong Kong ETF (NYSEArca: EWH).

However, investors should proceed with caution as the violence escalates.

“The Hong Kong community has been suffering from the acts of violence perpetrated by a small group of individuals lately,” the Real Estate Developers Association of Hong Kong said in a statement. “Such acts have deviated from the original intent of the peaceful demonstrations and are bringing distress to the business community and the general public as a whole.”

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