Vanguard Group, one of the world's largest asset managers, is preparing to introduce a new exchange-traded fund (ETF) that offers exposure to emerging markets while excluding China. The product, set to debut later this summer, reflects growing demand among institutional and retail investors for geopolitically de-risked portfolios, as U.S.–China tensions persist.

After a six-day rally, Chinese stock indices in Hong Kong have faced a sharp decline, reflecting heightened concerns over the escalation of the trade war between the U.S. and China. This situation has significantly impacted investor sentiment in the region, showcasing the markets' vulnerability to geopolitical factors.