World Markets Connected?

[Jelly]

I understand about the global economy but how can an exclusively China mutual fund mimic the US market in real time?

Example: The Hang Seng closed it's final trading day slightly up before the US downturn of Friday, yet the fund went down at the close, like most others. This isn't sour grapes. I play only with profits from earlier in the year nowadays. I'm just curious.

[aiki14]

Originally Posted by Jelly

I understand about the global economy but how can an exclusively China mutual fund mimic the US market in real time?

Example: The Hang Seng closed it's final trading day slightly up before the US downturn of Friday, yet the fund went down at the close, like most others. This isn't sour grapes. I play only with profits from earlier in the year nowadays. I'm just curious.

That's an interesting question, and other than currency exchange rate changes I don't see how that can happen. Can you post the fund you're referring to?
Funds can't be actually 100% in China because outsiders can't buy YUAN denominated equities. Also some companies trade on multiple exchanges, and as such may reflect both the small gain in Heng Seng Trading and the large loss in US trading. All mutual funds traded here are reconciled at the end of the trading day in the US markets so this is how you might see what you saw in your mutual fund.

[Jelly]

I have two that seem to list Chinese stocks only. They do, however, have a lot of exposure to the financial sector. I don't know how that would matter but you make good suggestions as to possible reasons.

PRASX and FHKCX

I started going outside the domestic arena before the buzz about doing so started. Most of these world venues have, perhaps, closer ties to the US and I have not been surprised to see them move in step with us.

Still, it was so interesting to see these funds act more connected than unique, in time and space, over the last trading day and the week for that matter, end of day US closes notwithstanding.