Dear readers, Lion-OCBC Securities Hang Seng Tech ETF provides investors with exposure to some of the biggest technology names listed on the Hong Kong stock exchange like AliBaba, Baidu, JD.com, Meituan, Xiaomi through just investing in one ETF.
With the rout of the Chinese technology stocks listed on China, Hong Kong stock markets or as ADRs on the US stock exchange, it is inevitable that LION-OCBC SECURITIES HANG SENG TECH ETF has been affected. Just how much was this ETF affected?
Well, LION-OCBC SECURITIES HANG SENG TECH ETF traded at the highest point of $1.771 in Feb 2021. Fast forward a year on, the ETF traded at $0.586 as of yesterday (15 Mar 2022) or a third of its highest price. Hence two-third of the ETF price has since eroded in a matter of just one year.
It seems not a good time to invest in Chinese stocks or Chinese ADRs listed on the US stock exchange with the interplay of the US China relationships, the Chinese government’s regulatory action on Chinese stocks as well as the potential delisting of some Chinese stocks from the US stock exchange. But for those who believe in Chinese stocks and can hold them for a long term, now may be one of the good times to enter in tranches for these Chinese stocks but there is a real risk of “catching a falling knife too”. Again, it is investors’ own call when it comes to investing.