'World is in flux', Foundation warns


Hong Kong property positions performed well in the Foundation China Opportunity fund's portfolio, and were the main driver behind the fund's 5.8% gain in June. These stocks benefited from two factors - renminbi revaluation and US fiscal policy, explains Foundation Asset Management's Michael Liang. Revaluation of the RMB helped both sentiment and capital flow to Hong Kong, and the US Federal Reserve's extension of low interest rates translated to low Hong Kong dollar interest rates, thanks to the currency peg.

On the short side, the fund also did relatively well, having heavily shorted cyclical stocks since January,