This post was originally published on South China Morning Post.
Explainer: How does Hong Kong’s Tracker Fund avoid being caught between US sanctions and doing its job?
The Tracker Fund, the largest exchange-traded-fund (ETF) in Hong Kong, was in the spotlight last week after its manager State Street Global Advisors Asia made a dramatic U-turn over whether it should comply with US sanctions against Chinese stocks in its portfolio.The reversal, matching a similar on-off-on flip-flop by the New York Stock Exchange, underscores how global financial institutions are struggling to keep up with the flurry of executive orders issued in the twilight of Donald Trump’s…