THE new Hang Seng Chinese Enterprises index fell to a historic low yesterday, closing 31.25 points down, or 3.15 per cent lower, at 960.45.
The threat of a trade war between China and the United States has caused a major sell-off of companies in this index.
Yet this threat will have little impact on H-shares, says Salomon Brothers.
Even if a trade war develops, H-share companies will not be directly affected.
The US bank said that the domestic issues that affected the companies were more important.
The Hang Seng Chinese Enterprises index has been under-performing the Hang Seng index and its sub-index following conglomerates over the past month.
Since December 9, the Chinese Enterprises index has been down 4.2 per cent against a fall of 3.4 per cent on the main Hang Seng index.