Asia seems to have recovered from the global financial crisis
well, and Hong Kong is no exception. Its exchange traded fund (
) has held up nicely, but remains off its pre-crisis highs and has
leveled off in recent months. Whether Hong Kong can continue to
grow remains to be seen.
Sophie Leung of Bloomberg reports
that Hong Kong's exports rose 26.7% from June of last year,
trumping the median estimate of 22.8%. This comes on the back of a
24.4% gain in May.
For June, shipments came in at $34.4 billion, showing that
countries in Asia
are experiencing a robust recovery. Shipments to Asia grew 27.4%
from a year earlier. [
Indonesia ETF: Ahead of the Pack.
Some think, however, that growth will be moderated as European
governments try to reduce their debt. In addition, "the gradual end
of post-crisis restocking by businesses," as well as monetary
tightening in countries such as India and Brazil may dampen growth.
10 Steps to a Global ETF Portfolio.
Along with growing exports, a recent sale of a rare luxury
residential site in Hong Kong has also reflected a robust economy.
According to Joyce Li of
The Wall Street Journal
, the site- located in Hong Kong's upmarket Peak district- was sold
at a government auction for $1.34 billion.
The auction marked the fourth in the fiscal year ending March
2011. Last month, a site at Ho Man Tin was sold for HK$10.9.
Analysts expect the real estate sector to remain robust through
mid-2011, "supported by a slew of government land auctions and
strong demand for new property launches." [
Hong Kong ETF Better, But Risks Exist.
On the tourism frontier, Hong Kong remains a big attraction to
foreigners and mainlanders. But a recent video of a tour guide
aggressively imploring her clients to buy more merchandise has not
helped the industry,
reports Sonya Bryskine of the Epoch Times
If the matter isn't contained, tourists may end up at other
destinations such as Taiwan and Australia.
For more stories on Hong Kong, visit our
Hong Kong category
iShares MSCI Hong Kong Index Fund (NYSEArca:
Sumin Kim contributed to this article.