Tracker Fund of Hong Kong

TraHK Suitable?
Now for the 10-billion dollar question - the public offer closes at 12 noon tomorrow. Should you buy the Tracker Fund of Hong Kong? We give you our considered view. (3-Nov-99)

TraHK on Tap
We explain in detail how the Tap mechanism will draw index shares from the Government's holdings when the market moves upwards, dampening the upside on the market. At the current rate, we expect HK$24bn of tap next year. We also look at the redemption and subscription mechanism and its likely effect on the trading prices of the TraHK. Finally, we demonstrate how the HSI has been boosted relative to the rest of the market by the Government's intervention. (1-Nov-99)

Circular TraHK
In an extraordinary move, the Government has said that its Mandatory Provident Fund Schemes Authority will invest part of its operating funds and compensation fund in the TraHK. This Government's blatant attempt to underwrite its own issue represents the next step on a slippery slope of Government fiddling with the markets. Who will invest next - the Airport Authority, Water Authority, or Hongkong Post? (28-Oct-99)

On TraHK
The prospectus for the Tracker Fund is now out and we've read it. In this article we look at the complexities of how and when the discount and pricing will be fixed, the odd lots created by the loyalty bonus, and make an early assessment of the potential public demand. (25-Oct-99)

The Outdated HSI
We begin our coverage of the Tracker Fund of Hong Kong with a commentary on the outdated Hang Seng Index. We question the relevance of the HSI as a proxy for Hong Kong's market - after reading our article, would you invest your portfolio in this basket? (19-Oct-99)

EFIL Announces Sale Plans
The Government has announced plans to sell off its surplus equity holdings as a unit trust, which we recommended in February. The plan is short on detail and fails to commit to a scheduled disposal programme, instead preferring to time the launch based on "prevailing market conditions". At current prices, we calculate that the Exchange Fund will have to sell HK$177bn of shares, or 79% of its holdings, to reduce its portfolio to the target 5% weighting. (21-Jun-99)

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