Following comments made by Hong Kong officials about the possibilities of changing the manager of the Tracker Fund, State Street Global Advisors Asia said it will resume the purchase of stocks sanctioned by the U.S.
«TraHK will resume investments in sanctioned entities that are constituent companies of the Hang Seng Index with effect from 14 January 2021,» State Street said in an exchange filing.
«We appreciate the significant public interest given the importance of TraHK to the Hong Kong markets and hope that the resumption confirms our commitment to track the Hang Seng Index for TraHK, as we have done for the past 21 years.»
Threat of Manager Change
Just one day after Hong Kong chief executive Carrie Lam signaled the possibility of a manager change, citing appointment powers of the Hong Kong Monetary Authority (HKMA), the Boston-based fund firm reversed an initial decision to comply with Washington.
«The whole purpose of the Tracker Fund is to track the Hang Seng Index,» said ex-HKMA chief Joseph Yam Chi-kwong, prior to the reversal. «If the manager can not track the Hang Seng Index, then the manager is no longer fit for duty.»
