While this morning's GDP report out of HK wasn't new news, it inspired many questions in our models with regards to how bad HK can still get while the Chinese domestic consumption story improves. Obviously HK is much more levered to Wall Street and London than inland China is. The answers we are seeing initially are not positive enough for us to hold the line long EWH here.
As the facts change, we will. To put the Hong Kong +1.7% GDP growth print in historical context, we have attached the chart below.