CESC to introduce CES China 280 Index on July 7

18 June 2014   Category: News, Asia, China, Hong Kong   By Asia Asset Management

Building on the successful launch of the first batch of indices in the CES China Cross Border Index Series, China Exchanges Services Company Limited (CESC) has announced it will launch the CES China 280 Index (CES 280) on July 7. 

The CES 280 will add to the China growth story of CESC’s first cross border index, the CES China 120 Index (CES 120), by expanding the CES China Cross Border Index Series’ coverage of Mainland stocks listed in Shanghai, Shenzhen and Hong Kong. The expansion will enlarge the aggregate market value of the Mainland stocks in the series from 50% to 70% of the total value of the universe. 

Complementing the large-cap stocks in the CES 120, the CES 280 is comprised of the next 200 largest A-share companies from the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), and next 80 largest Mainland stocks from Hong Kong Exchanges and Clearing Limited (HKEx). 

The CES 280 has a better historical performance compared to its peer indices*.  The CES 280 also has a well-balanced combination of sectors. The first three largest are industrial (17.5% of the index as of December 31, 2013), consumer discretionary (16.7%) and financial (15.8%).

“The business focus of CESC has always been on offering investors cross-border opportunities from the mainland China and Hong Kong markets, as CESC is a joint venture of the three major China exchanges which aims to contribute to the internationalisation of China’s capital market,” said CESC Chief Executive Bryan Chan (CESC is a joint venture formed and equally owned by Hong Kong Exchanges and Clearing Limited, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Registered and incorporated in Hong Kong, CESC was officially launched in September 2012 and commenced operations on October 30 that year). 

“The introduction of the CES 280 will supplement the CES 120 by offering more options to investors and meeting the anticipated demand for cross-border investment gauges following the launch of Shanghai-Hong Kong Stock Connect. CESC responded to new investment horizons by firstly offering the CES 120 and now the CES 280,” Mr. Chan added. 

The new index will be disseminated via information vendors in mainland China and Hong Kong starting from its launch on July 7.  For more information, please refer to the index information and index methodology posted on the CESC website.

* From December 31, 2004, to December 31, 2013, the CES 280 had an average annual return of 9.8% compared to the Top 50 A shares’ average annual return of 5.8%.