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Shenzhen Stock Exchange Releases "Carbon Tech" Indices

Date 28/09/2021

On September 26, Shenzhen Securities Information Co., Ltd., a wholly-owned subsidiary of SZSE, released two "Carbon Tech" indices — Carbon Tech 60 and Carbon Tech 30. The indices were designed to further demonstrate the operating characteristics of the listed companies in "peak carbon emissions and carbon neutrality" technology service industry, guide the flow of market resources to the field of green and low-carbon development, and help the capital market better serve the goal of "peak carbon emissions and carbon neutrality".

 

 

Carbon Tech 60 is jointly researched and compiled by SZSE and the Center for International Knowledge on Development (CIKD). Its full name is "CNI CIKD Carbon Neutral Technology Power Index" with the code of "399060", and 60 stocks in SZSE are selected as its constituents. The full name of Carbon Tech 30 is "SZSE ChiNext Carbon Neutral Technology Power Index" with the code of "399030", and 30 stocks on the ChiNext Board of SZSE are selected as constituents.

The “Carbon Tech” indices are compiled based on the research results of CIKD, China Energy Conservation and Environmental Protection Group and other institutions. The "Carbon Neutral Technology Service Industry Classification" and "Carbon Opportunity Factor Evaluation Model" are constructed with a focus on six industries of energy transformation, industrial decarbonization, building energy conservation, transportation emission reduction, agricultural innovation and green services. After comprehensively examining factors such as carbon opportunity factor score, market value scale, industry representativeness and other factors, top-ranked SZSE companies are selected as constituent stocks. Covering industry leaders with market influence such as CATL (300750), BYD (002594), Sungrow Power Supply (300274) and CTI (300012), the indices highlight the innovative vitality and development advantages of SZSE listed companies in the field of low-carbon technology, and provide high-quality "carbon neutral" targets for medium and long-term fund allocation. According to estimates, from the base date to 31 August 2021, the cumulative return of Carbon Tech 60 is 290% with an annualized return at 23%, and the cumulative return of Carbon Tech 30 is 425% with an annualized return at 28%. 

In recent years, upholding the concept of green and sustainable development, SZSE has given full play to its market hub function, promoted the improvement of resource allocation efficiency, and actively offered direct financing support for the development of green industries. At present, there are more than 260 SZSE-listed companies engaged in green industries, with a total market capitalization of more than CNY 7 trillion, accounting for 18% of the total market capitalization of SZSE-listed companies. According to statistics, the total green income of SZSE-listed companies in 2020 reached CNY 886.2 billion, among which over 170 companies had green income accounting for more than 20% of their total income, indicating remarkable industrial cluster effect. At the same time, SZSE pioneered the compilation of green indices in China. Since the release of the country’s first environmental protection index in 2008, it has successively launched 27 green indices covering topics such as environmental protection, responsibility and governance to guide the allocation of medium and long-term funds in green industries and support the development of green economy.

The 14th Five-Year Plan period is the key period and window period for peaking carbon dioxide emissions. SZSE will take the initiative in a new development stage, fully, accurately and comprehensively apply the new development concept, and actively serve the fostering of a new development pattern. We will give full play to the functions of the capital market platform, and increase direct financing support. We will enrich and improve the green index system, promote the development of the carbon neutral series fund products, and strive to create an innovation engine for green finance. We will also guide the market to invest in green industries, provide diversified investment targets for sustainable development, and better serve the green, low-carbon and high-quality development.