Hong Kong H Index and Hang Seng Index, minus 6-18% in one week
As the real estate crisis, which began with the 토토사이트default (default) of Chinese real estate developer Biguiyuan (Country Garden), spread, the accounts of domestic investors investing in Chinese stocks went blue. Over the past week, all 10 domestic exchange-traded funds ( ETFs ) investing in Chinese companies listed in Hong Kong have recorded significant negative returns.
According to the Korea Exchange on the 22nd, for a week from the 11th to the previous day (21st), ‘ TIGER China Hang Seng Tech Leverage ETF (Synthetic H)’ and ‘ KODEX China H Leverage (H) ‘ ETFs fell 18.84% and 17%, respectively. . Leveraged products are products that move at twice the daily rate of return of each tracked index. For example, if the KOSPI index rises by 1%, leveraged products double their profits by 2%. Conversely, a 1% decline in the index results in a 2% loss for leveraged products. The ‘ TIGER China Hang Seng Tech ‘ ETF
, which yields 1x , is negative 8.20%, the ‘ KBSTAR China HSCEI (H) ‘ ETF is negative 8.19%, and the ‘ KODEX China Hang Seng Tech ‘ ETF is negative 8.07%. ‘ KBSTAR China Hang Seng Tech ‘ ETF and ‘ ACE China Hang Seng Tech ‘ ETF also lost 7.91% and 7.84%, respectively. ‘The TIGER China HSCEI’ETF was down 6.52%, the ‘ KODEX China H’ETF was down 6.47%, and the ‘ TIGER China Hang Seng 25′ ETF was down 6.01%. The loss of
Chinese ETFs is due to the decline in the stock market of the securities sector that these products track. On the 21st, the Hong Kong Hang Seng Index closed at 17,623.29, down 327.56 points (1.82%) from the previous day. It fell 8.44% in a week from the 11th. The Hong Kong H-Index also suffered a large drop. It fell 9.02% over the past week to close at 6030.64. The Hang Seng Index is calculated by Hang Seng Bank, a subsidiary of Shanghai Bank of Hong Kong ( HSBC ), for the top blue chip stocks listed on the Hong Kong Stock Exchange, and the Hong Kong H Index weights the stock prices of about 50 blue chip companies in mainland China listed on the Hong Kong Stock Exchange. It is an index calculated by averaging.
As the Chinese stock market slumped, so did investors. Domestic investors net sold 12.323 billion won in 10 China-related ETFs from the 11th to the 21st. One investor said, “Hong Kong stock market price-to-asset ratio ( PBR)) is the lowest among the major stock markets and the cheapest, so I went in thinking there was not a small chance of a rebound, but I think I made a big mistake.”
As concerns emerged that the real estate crisis would spread to all financial institutions, the Chinese government pulled out an interest rate cut card that day. The People’s Bank of China, the central bank of China, cut the lending prime rate ( LPR ), which is commonly used as the base rate, by 0.1 percentage point for the first time in two months. However, given that the 5-year maturity LPR was maintained at 4.2% per annum, the Chinese stock market is expected to decline further. Shin Seung-woong, a researcher at Shinhan Investment & Securities, said, “Without the Chinese government’s active intervention, the risk of real estate default will continue.