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State Street Urged to Clarify Ban Impact on H.K. Fund

  • Ex-HKMA chief says State Street no longer fit to manage ETF
  • Money managers are selling stakes in sanctioned companies

The Hong Kong Monetary Authority is asking State Street Corp.’s Asia unit to clarify how it plans to address the effect of U.S. sanctions on its $13.5 billion exchange traded fund.

The Tracker Fund, which traces the Hang Seng Index performance and is Hong Kong’s most actively traded ETF, includes shares of sanctioned Chinese entities such as China Mobile Ltd. Hong Kong’s de facto central bank said that State Street Global Advisors Asia Ltd. should take all feasible and necessary measures to mitigate impacts on the fund.