FINANCE

State Street Bows Out From Hong Kong’s Flagship ETF

Published: Aug. 8, 2025 4:55 a.m. GMT+8

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In September 2022, State Street transferred TraHK’s management duties to Hang Seng Investment Management Ltd

State Street Corp. is resigning as trustee for the Tracker Fund of Hong Kong (TraHK), completing the U.S. financial giant’s full withdrawal from one of the city’s most prominent exchange-traded funds.

HSBC Institutional Trust Services (Asia) Ltd. is expected to take over the trustee role from State Street by October 2025, subject to regulatory approval, TraHK said Thursday.

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State Street Corp. will resign as trustee of the Tracker Fund of Hong Kong (TraHK) by October 2025, with HSBC Institutional Trust Services set to replace it.
TraHK, launched in 1999 and now Hong Kong's third-largest ETF with HK$161.8 billion ($20.6 billion) in assets, faced increased scrutiny due to exposure to US-blacklisted Chinese firms.
Hang Seng Investment Management assumed management in 2022, and TraHK posted a 26.1% gain this year with daily turnover of HK$18.2 billion.

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Who’s Who

State Street Corp.: State Street Corp. is fully withdrawing from the Tracker Fund of Hong Kong (TraHK), resigning as trustee by October 2025. This move concludes its long involvement with the fund it helped establish. The withdrawal is attributed to challenges faced by U.S. financial institutions investing in China amid geopolitical tensions and U.S. blacklisting of certain Chinese companies, some of which TraHK tracks.

HSBC Institutional Trust Services (Asia) Ltd.: HSBC Institutional Trust Services (Asia) Ltd. is expected to become the new trustee for the Tracker Fund of Hong Kong (TraHK), taking over from State Street Corp. by October 2025. This transition is subject to regulatory approval. As a trustee, HSBC Institutional Trust Services (Asia) Ltd. will hold and administer assets for the benefit of TraHK.

China Mobile Ltd.: China Mobile Ltd. is one of the companies included in the Hang Seng Index. These companies faced investment bans from the Trump administration in 2021 due to alleged links with China's military. This ban led to increased scrutiny for financial institutions like State Street.

China Unicom (Hong Kong) Ltd.: China Unicom (Hong Kong) Ltd. is a Chinese company included in the Hang Seng Index. It was among the companies blacklisted by the U.S. government under the Trump administration, which banned Americans from investing in firms allegedly linked to China's military. This ban impacted the Tracker Fund of Hong Kong (TraHK), which tracks the Hang Seng Index.

CNOOC Ltd.: CNOOC Ltd. is a Chinese company, along with China Mobile Ltd. and China Unicom (Hong Kong) Ltd., that was blacklisted by the U.S. government. The Trump administration, in 2021, banned Americans from investing in firms allegedly linked to China's military, which included CNOOC Ltd. This ban affected the Hang Seng Index, which the Tracker Fund of Hong Kong (TraHK) tracks.

Hang Seng Investment Management Ltd.: Hang Seng Investment Management Ltd. is a local asset manager that took over the management duties of the Tracker Fund of Hong Kong (TraHK) from State Street in September 2022. Since then, it has launched new initiatives, including a yuan-denominated trading counter and related products in Thailand and Saudi Arabia.

State Street Bank and Trust Co.: State Street Bank and Trust Co. is a subsidiary of State Street Corp. It served as the trustee for the Tracker Fund of Hong Kong (TraHK) since the fund's inception in 1999. Although its parent company fully withdrew, State Street Bank and Trust Co. continued its trustee role even after State Street Corp. transferred management duties in 2022. It is resigning as trustee by October 2025.

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What Happened When

1998：: The Hong Kong government conducted a market rescue, acquiring billions of dollars in shares.

1999：: Tracker Fund of Hong Kong (TraHK) was launched by the Hong Kong government to offload shares acquired in 1998.

2021：: The Trump administration banned Americans from investing in firms allegedly linked to China’s military.

2021：: State Street briefly halted investments in certain index constituents due to compliance issues.

September 2022：: State Street transferred TraHK’s management duties to Hang Seng Investment Management Ltd.; State Street Bank and Trust Co. remained as trustee.

By October 2025：: HSBC Institutional Trust Services (Asia) Ltd. is expected to take over the trustee role from State Street, pending regulatory approval.

August 7, 2025：: TraHK announces that State Street will resign as trustee, with HSBC Institutional Trust Services (Asia) Ltd. expected to take over by October 2025.

As of August 7, 2025：: TraHK ranks third in size among Hong Kong exchange-traded funds, with assets of HK$161.8 billion ($20.6 billion).

As of August 7, 2025：: TraHK had gained 26.1% in 2025, with daily turnover at HK$18.2 billion, accounting for 7.4% of the Hong Kong Main Board’s total.

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