Hong Kong’s Biggest ETF Resumes Buying Stocks Banned by U.S. (3)

The largest exchange-traded fund tracking the Hang Seng Index will resume buying shares of Chinese companies included in a U.S. investment ban, marking a U-turn by State Street Corp. after it was criticized by Hong Kong’s former central bank chief.

The $13 billion Tracker Fund of Hong Kong, the city’s most actively traded ETF, said in a statement late Wednesday that it reversed a decision announced just two days earlier to stop making new investments in companies included in the U.S. ban. The about-face boosted shares of China Mobile Ltd., which has swung wildly over the past week ...