Cross-border China index to be launched jointly by Hong Kong, Shanghai and Shenzhen stock exchanges

Dec 3rd, 2012 | By | Category: ETF and Index News

China Exchanges Services Company (CESC), a new joint venture between the stock exchanges of Hong Kong, Shanghai and Shenzhen, is set to introduce the CES China 120 Index (CES120), its first cross-border index, on 10 December 2012.

Cross-border China index to be launched by joint venture between Hong Kong, Shanghai and Shenzhen stock exchanges

The CES China 120 Index (CES120), a cross-border China index, is set to be launched by the China Exchanges Services Company, a joint venture between the stock exchanges of Hong Kong, Shanghai and Shenzhen.

The CES120 will be the first index in the new CESC Cross Border Index Series, which will track the performance of shares in Mainland China and Hong Kong.

China Securities Index Co (CSI), the company behind the widely-followed CSI300 Index of China A-Shares, has been commissioned to calculate, maintain and disseminate the index.

CESC will also develop sub-indices including a pure A-shares index and a Hong Kong Mainland index based on CES120  constituents. Index compilation is expected to be completed soon.

Bryan Chan, CESC Chief Executive, said: “The CES120, the first cross-border index of CESC, covers Hong Kong-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.”

He added: “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.”

Ma Zhigang, China Securities Index Co CEO, said: “CESC and CSI share the same mission and responsibility in promoting the development of Mainland China and Hong Kong financial markets. 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 the Hong Kong exchange.

The index has been designed to serve as an underlying for investable index-linked products, such as exchange-traded funds (ETFs) and derivatives (options, futures and swaps), as well as a benchmark for actively managed cross-border funds.

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