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State Street Dropped as Manager of Hong Kong’s Biggest ETF

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Hong Kong appointed a Hang Seng Bank Ltd. unit to manage the city’s largest exchange traded fund, replacing State Street Corp. after the U.S. firm became embroiled in a controversy over sanctioned Chinese companies last year. 

The Tracker Fund is the most actively traded ETF in Hong Kong with HK$112.8 billion ($14.4 billion) in assets, tracking the benchmark Hang Seng Index. State Street Global Advisers, the incumbent manager and unit of State Street Corp., last year said it would avoid making new investments in sanctioned companies such as China Mobile Ltd. that are included in the index, but quickly reversed its decision after a local outcry.