Two new indices launched by Hang Seng Indexes
Hang Seng Indexes has launched the Hang Seng China New Economy Index and Hang Seng Stock Connect Sector Top Index.
The company writes that the Hang Seng China New Economy Index aims to reflect the performance of Chinese companies that operate in ‘New Economy’ industries and are listed in Hong Kong, mainland China and the United States.
The Hang Seng Stock Connect Sector Top Index benchmarks the performance of leading companies across different sectors that are eligible for trading via the Stock Connect schemes.
China’s New Economy enterprises have been under the spotlight among global investors in recent years. Hang Seng Indexes identified the need for an index that tracks the performance of New Economy companies in China’s onshore and offshore markets, and could be used as a base for various investment instruments. The broad index coverage of the Hang Seng China New Economy Index allows for an integrated China equity universe.
Vincent Kwan, Director & General Manager of Hang Seng Indexes Company Limited, says: “The New Economy concept is of rising interest among investors. Our first response was the launch of the Hang Seng SCHK New Economy Index in January this year. With a focus on Chinese enterprises, the Hang Seng China New Economy Index will provide the market with a comprehensive reference that reflects the performance of the top-tier Chinese companies in New Economy industries across three key locations.”
The Hang Seng Stock Connect Sector Top Index seeks to measure the performance of sector leaders that are listed in Hong Kong and/or the Mainland. The top two companies in each of 31 industry sectors – as measured by calculating combined rankings based on market value, net profit and revenue – are included as constituents.
For companies with dual listings of Ashares and H-shares, the index adopts a ‘smart’ strategy that will select the lower-priced share class as the constituent and perform switching between share classes based on any change in relative prices. Switching is conducted on a monthly basis.
“We have designed the Hang Seng Stock Connect Sector Top Index to serve as a reference benchmark for investors who are interested in cross-market investment with a focus on sector leaders,” Vincent Kwan says.