China Exchanges Services Company Limited (CESC) today (Friday) announced the launch of a new index series on the Shanghai-Hong Kong Stock Connect (SHSC) on 15 December 2014. The series is comprised of the CES Shanghai-Hong Kong Stock Connect 300 Index (CES SHSC300) and CES Stock Connect Hong Kong Select 100 Index (CES SCHK100).
With investors’ perception of the Mainland and Hong Kong as two distinct markets is expected to change as a result of SHSC, the new index series will provide a benchmark for market participants to measure the performance of eligible stocks under SHSC.
The series is based on market capitalisation and free float. The CES SHSC300 consists of the top 200 A shares which are listed on the Shanghai Stock Exchange and eligible for SHSC and the top 100 SHSC-eligible stocks listed in Hong Kong. It is the first SHSC-related index to track the overall performance of stocks eligible for the scheme. The CES SCHK100 comprises the top 100 Hong Kong-listed stocks eligible for SHSC, excluding the dual-listed A+H shares. It creates an opportunity for Mainland investors to gain exposure to stocks that didn’t have access to before SHSC.
“CESC strives to be a leader in cross-border indices, and we always pay attention to the latest market movements and policy developments. The Shanghai-Hong Kong Stock Connect programme is a new milestone for both markets. CESC’s new index series is a simple, clear and reliable benchmark for investors to assess the performance of the stocks eligible for the programme. At the same time, the series enables financial institutions to develop new products in light of Shanghai-Hong Kong Stock Connect,” said CESC Chief Executive Mao Zhirong.
“Looking into the future, we will continue to work closely with our partners to develop more innovative cross-border indices and products. We will also extend our reach to more foreign investors with our new index products, and the new products will help us strengthen our foothold in Hong Kong,” Mr Mao added.
The new index series will be disseminated via China Securities Index Company Limited, or CSIC, and HKEx in Mainland China and Hong Kong respectively from 15 December 2014. For more information, please refer to the index information and index methodology listed on the CESC website.
CESC index information and real-time index values are also available on the CESC website (www.cesc.com).
Overview of the CES SHSC300 and CES SCHK100
CES SHSC300 | CES SCHK100 | |
Universe | SHSC eligible stocks | Eligible stocks for Southbound Trading under SHSC |
Number of Constituents | 300 | 100 |
Market Value Ranking | A shares (ranking from 1st to 200th ) and Hong Kong shares(ranking from 1st to 100th) |
Hong Kong shares (Excluding dual-listed A+H stocks)(ranking from 1st to 100th ) |