Hong Kong: Exports Fall Along with ETF

Dec.30.08 | About: iShares MSCI (EWH)

Export-dependent economies in Asia and the exchange-traded funds that track their markets are vulnerable to declining and oftentimes negative growth. Hong Kong’s (NYSEARCA:EWH) exports fell for the first time in five months in November according to Bloomberg, worsening the outlook for an economy already in recession. Overseas sales declined 5.3 percent from a year earlier, to 231 billion Hong Kong dollars ($29.8 billion), the government said, after gaining 9.4 percent in October.

Asia’s export-dependent economies are being battered by falling demand for electronics and textiles. Imports fell 7.9 percent, to 239 billion Hong Kong dollars, leaving a trade deficit of 8.2 billion Hong Kong dollars.