Is this a warning for the traders who are trading in Hong Kong stock exchange?
Exchange Traded Funds (ETFs), listed securities, who track a basket of shares and see the weight and transparency of investors' lower costs and proprietary shares, have seen an explosive growth in the global financial world.
The demand for Hong Kong ETF is cooling due to an adverse regulatory environment, limited variety of available ETFs and relatively less product understanding. According to Bloomberg data, investors in Hong Kong have pulled out the US from the $ 4.8 billion stock ETF this year in Hong Kong, while the US has invested 262.8 billion US dollars and US$ 38.3 billion.
Black Rock and Deutsche Asset Management also deleted their Chinese region funds in Hong Kong this year. Money was unable to gather enough assets
"There is a lot of misunderstanding of the liquidity of ETF, however, we are still seeing that the rapid growth in the market is increasing with more educational programs to help customers understand the ETF," Hong Kong's investment in Hong Kong In Asia, the managing director of retail and intermediary business, Linda Luk said. Under the global investment by September 30, the American investment firm has assets worth $ 4.7 trillion.
In September, the biggest drop in Hong Kong's home prices, with the lowest sliding cliffs in nine months, was recorded.
According to the data released by the government's Rating and Assessment Department on Tuesday, the city's domestic price index has increased from 0.26 percent to 340.
An increase of 0.4 percent in August and slow growth of 0.3 percent in July.
Although a relatively modest increase, it was still 18th monthly increase in prices for used flats.
David Chain, director of Ricocop Properties, said: "The prices of the home will continue to rise but will continue to slow in the coming months."
Hong Kong's home prices have increased 25.3 percent since March 2016.
According to statistics, flats with the area less than 439 sq. Ft. Increased by 0.4 percent in September, compared to 0.8 percent in the same month a flat figure.
"In the last two years, the price of small flats has increased rapidly in the area of about 200 sq ft. Now, it is time for consolidation," Chan said.
With tightening of mortgage loans, he said that HK $ 7 million to HK. Flats worth $ 10 million had to suffer the most, because the future buyers should have deducted 50 percent of the value in the form of down payment.