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Offer gives cause for pause

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SCMP Reporter

To buy, or not to buy? That is the question. Hong Kong investors are now being offered what, from the marketing brochures, appears to be a blissful future, made safe by the TraHK, the Government's multi-billion-dollar investment fund.

The answer to the question is another question. Why? This must be the first query raised when any form of investment is considered. It would be a naive investor who did not raise it, and it is hard to believe that any Hong Konger would be that naive about money.

One answer would appear to be that given by mountaineers when asked why they tackle a particular peak: 'Because it's there.' Usually, funds are launched because the manager sees an opportunity to develop a new product, or challenge an existing vehicle.

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TraHK has been launched because the Government had a lot of shares it needed to sell, and this hybrid fund concept was, some acknowledge, the least worse way of doing it.

Whether such damningly faint praise, or the mere fact that the fund has been launched should be a reason for the public to rush out and buy it, is another matter.

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The Government's marketing agency's message is that this fund represents an investment in Hong Kong's future. In one go, investors get a product that follows exactly the Hang Seng Index.

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