The "Executive Order on Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies" became effective on Monday, Jan. 11, 2021, at 9:30 a.m. EST. The Executive Order brought some "backwash" as its ripples reached markets outside of the U.S. State Street Global Advisors (SSGA), the manager of the Tracker Fund of Hong Kong (02800, TraHK), announced on Jan. 11, 2021 that it would stop adding new investments in the sanctioned securities to TraHK. However, SSGA reversed its position three days later, stating it would resume buying the sanctioned securities for TraHK from Jan. 14.

• SSGA (Jan 11, 2021): Tracker Fund of Hong Kong - Stop adding new investments to sanctioned entities.
• SSGA (Jan 13, 2021): Tracker Fund of Hong Kong (02800, listed in Hong Kong) - Resume adding new investments to sanctioned entities.

With this U-turn and the relatively high market volatility, it is worthwhile to understand the impact on TraHK's portfolio over these 3 days. A closer examination revealed the following observations: