Hang Seng Launches New Hang Seng Stock Connect China Enterprises Index, Tracks Chinese Giants listed in Shanghai, Shenzhen & Hong Kong including Moutai, Tencent, CATL & Meituan with 12.6% Back-Tested Returns
1st September 2022 | Hong Kong
Hang Seng Indexes Company has launched the Hang Seng Stock Connect China Enterprises Index (HSCEA), tracking Chinese giants listed in Shanghai, Shenzhen & Hong Kong including Moutai, Tencent, CATL & Meituan. Hang Seng Indexes: “HSCEA’s 80 Shanghai, Shenzhen or Hong Kong-listed constituents provide a well-rounded portfolio with a more balanced mix of industries. As of 19 August, the top four sectors with the highest weightings in the index were Financials (20.6%), Consumer Staples (19.4%), Information Technology (17.5%) and Industrials (13.3%). The market capitalisation of the HSCEA was over CNY 25 trillion, presenting a high representation of overall Chinese stocks. According to back-testing data, the HSCEA would have delivered a cumulative return of 12.6% p.a. since 2017.” Daniel Wong, Chief Index Officer at Hang Seng Indexes Company: “The continuing internationalisation of mainland China capital markets with increasing accessibility presents huge potential investment opportunities and more global investors are eyeing the A-shares market. We launched the HSCEA to serve as a comprehensive tracker of Chinese companies with a high degree of representativeness, regardless of whether they are listed in mainland China or in Hong Kong. We believe the HSCEA, in conjunction with our existing flagship index HSCEI, will help investors to embrace the expanding investment opportunities.”
“ Hang Seng Stock Connect China Enterprises Index Tracks Chinese Giants listed in Shanghai, Shenzhen & Hong Kong including Moutai, Tencent, CATL & Meituan with 12.6% Back-Tested Returns “
Hang Seng Stock Connect China Enterprises Index (HSCEA)
Hang Seng: Since the rollout of the Stock Connect scheme in 2014, the connections between the mainland China and Hong Kong stock markets have become much stronger. In a market consultation about creating a new ‘Comprehensive’ China index conducted by Hang Seng Indexes Company earlier this year, feedback from market participants showed that there is a significant interest in a tradable cross-market China index that could serve as the benchmark for a comprehensive China portfolio and as the basis for index-linked products. Riding on the success of the HSCEI, the HSCEA has been launched to meet this market demand and provide investors with a one-stop solution for tracking Chinese companies with a high degree of representativeness.
The HSCEA includes Southbound Stock Connect-eligible HSCEI constituents and large-cap A-shares that are eligible for trading through the Northbound Stock Connect. Among the five largest constituents, Moutai, Tencent, CATL, and Meituan, are listed on one of the mainland or Hong Kong stock exchanges. Only China Construction Bank is listed in both the mainland China and in Hong Kong.
The HSCEA is calculated and disseminated in real-time at two second intervals. The index constituents are reviewed quarterly. Further details about the index methodology, index characteristics and constituent change review results for the quarter ended 30 June 2022, as well as the consultation conclusions, are provided in the appendices that accompany this release.
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