China Exchanges Services Company Limited (CESC) Launches New Index Series On Shanghai-Hong Kong Stock Connect

China Exchanges Services Company Limited (CESC) today (Monday) launched a new index series on the Shanghai-Hong Kong Stock Connect (Stock Connect) programme.  The series is composed of the CES Shanghai-Hong Kong Stock Connect 300 Index (CES SHSC300) and CES Stock Connect Hong Kong Select 100 Index (CES SCHK100).  The CES SHSC300 and the CES SCHK100 today closed at 3,511.26 and 4,355.36 respectively. 

The CES SHSC300 consists of the top 200 A shares which are listed in Shanghai and eligible for Stock Connect and the top 100 Stock Connect-eligible stocks listed in Hong Kong.   It is the first Stock Connect-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 Stock Connect, excluding stocks of companies with both A and H shares.  It is a unique Stock Connect-related index that tracks the Hong Kong stocks available for the scheme’s Southbound trading and therefore creates an opportunity for issuers to offer products for Mainland investors seeking exposure to stocks which they didn’t have access to before Stock Connect.   In terms of historical return, the CES SCHK 100 outperformed other large cap indices in Shanghai and Hong Kong over the past five years. 

CESC chief executive Mao Zhirong said, “CESC developed this index series in response to Stock Connect, an important milestone in the development of the Hong Kong and Mainland stock 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.  We have received initial interest from Mainland asset managers about issuing ETFs based on our new Stock Connect indices.” 

The new index series is disseminated via China Securities Index Company Limited, or CSIC, and HKEx in Mainland China and Hong Kong respectively.  For more information, please refer to the index information and index methodology listed on the CESC website (www.cesc.com).