China Exchanges Services Company Limited (CESC) yesterday (Tuesday) announced that it will introduce its first cross-border index which tracks the performance of shares in Mainland China and Hong Kong on 10 December 2012. The CES China120 Index (CES120) is the first index in the new CESC Cross Border Index Series.
To develop the cross-border index series, CESC has entered into an Index Service Agreement with China Securities Index Co., Ltd. (CSI). CSI is commissioned to calculate the new Cross Border Index Series, provide index maintenance and service dissemination of the indices.
CESC will also develop sub-indices including a pure A-shares index and a Hong Kong Mainland index based on CES120 constituents in the future. Index compilation is expected to be completed soon.
“The CES120, the first cross-border index of CESC, covers HKEx-listed Mainland companies as well as companies listed on the Mainland exchanges. It will provide a new benchmark for products tracking the performance of and seeking exposure to Mainland assets traded on the two markets,” said CESC Chief Executive Bryan Chan. “The cooperation with CSI marks an important milestone in the business development of CESC. We believe the two parties will work closely together towards further development of the cross-border indices covering the Mainland and Hong Kong markets.”
“CESC and CSI share the same mission and responsibility in promoting the development of Mainland China and Hong Kong financial markets,” said CSI CEO Ma Zhigang. “We will cooperate and complement each other, and jointly promote the cross-border index as well as the development and application of its derivative products to provide the market with more investment alternatives.”
The CES120 is comprised of the 80 most liquid and largest stocks in terms of market value trading on the Shanghai and Shenzhen stock exchanges as well as the 40 most liquid and largest Mainland companies in terms of market value listed on HKEx. The index will be disseminated via information vendors in Mainland China and Hong Kong, and will be available on the CESC, CSI and HKEx websites starting on 1December 2012. (Please refer to the appendix for detailed index methodology.)
Further information about CESC’s indices and real-time index values are available on its website (www.cesc.com).
A photo of the signing ceremony can be downloaded from the CESC website.
Presentation on CES China 120 Index at the CESC-CSI Joint Press Conference
