Hong Kong’s Safest Stock Falls Off the Rails as Protests Hit MTR

Train operator had best risk-adjusted return on Hang Seng
Sentiment is souring after provision, anti-government protests

Protesters prevent the MTR train door from closing at Fortress Hill station on Aug. 5.Photographer: Anthony Wallace/AFP via Getty Images

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By Jeanny Yu

August 5, 2019 at 1:02 AM UTC

Updated on

August 5, 2019 at 8:46 AM UTC

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One of Hong Kong’s safest stock bets is veering off the tracks.

MTR Corp. had the best risk-adjusted return of any Hang Seng Index member this year through Friday, data compiled by Bloomberg show. Shares of the government-owned rail operator, a stable dividend payer relatively immune to the U.S.-China trade dispute, fell 3.4% Monday, extending a loss from a July 18 record high to 13%. The shares had risen 35% from the start of the year to that peak, with volatility well below peers.