Cathay Life and Shin Kong Life have been upping their exposure to emerging market bonds. They and Fubon Life have also generated strong returns from high-dividend stocks.
Fund managers, already concerned about Beijing’s intervention in the stock market, won’t welcome a proposed index circuit breaker.
Southbound trading hits its quota limit for the first time, pushing the Hang Seng Index up to a level not seen since the financial crisis. But fears are voiced over imported volatility.
Fund managers adopting a ‘wait and see’ approach to adding China to portfolios are putting broader mandates at risk, says MSCI’s Chris Ryan.
Pre-trade checks and stock transfer restrictions are cited as particular problems for long-only managers who will look to trade A-shares via the Hong Kong-Shanghai stocks link.
An upgrade and new data centre for hosting services may spark interest in algorithmic trading strategies on Hong Kong stocks, as latency is reduced to below two milliseconds.