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China Exchanges Services Company Limited (CESC) launched its CES China Private Elite Index (CES P Elite), an index designed to capture the performance of Mainland China’s 30 largest private enterprises listed in Hong Kong or the US, on Monday, 23 January 2017.
The CES P Elite is available daily after the close of the Hong Kong and US markets. The closing level of the CES P Elite on 23 January 2017 was 3943.11 (+35.56).
The index’s constituents are generally considered to have remarkable vitality because they have a relatively autonomous ownership structure whilst enjoying strong support from the government. In terms of historical return, the CES P Elite outperformed different Hong Kong and Mainland indices over the past five years (Appendix 1). As shown in Appendix 2, its 1year, 3 year and 5 year returns were 22.10 per cent, 20.32 per cent and 69.09 per cent respectively.
The universe of the CES P Elite ensures the broad market coverage and industry diversification that are valued by global investors. The CES P Elite is comprised of stocks from the most dynamic sectors in China’s economy, including information technology, consumer discretionary, financial and consumer staples (Appendix 3). These sectors are commonly believed to have strong growth potential and therefore represent the future of the world’s second largest economy as it evolves.
CESC has licensed the CES P Elite to a product issuer to serve as the underlying index for the creation of an index-linked product. An index overview and the constituent list are available in Appendix 4 and 5.
