Hang Seng launches Mainland China Banks Index

Feb 13th, 2017 | By | Category: ETF and Index News

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Hang Seng Indexes has launched the Hang Seng SCHK Mainland China Banks Index, reflecting the performance of mainland China companies in the banking sector that are listed in Hong Kong and are eligible for trading via the southbound trading link of the Stock Connect Scheme. According to Hang Seng, the index was created to fulfil growing demand from Mainland product issuers looking to create funds, including ETFs, that are exposed to particular sectors of the Hong Kong stock market.

Hang Seng launches Mainland China Banks Index

Top constituents in the Hang Seng SCHK Mainland China Banks Index include Bank of China, China Merchants Bank, China CITIC Bank Corporation, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank

Constituents are derived from the Hang Seng Composite Index. To be eligible for inclusion, constituents must be eligible for trading via the southbound trading link of the Stock Connect Scheme, be classified as a banking company under the Hang Seng Industry Classification System, and must have over 50% of its sales revenue (or profits or assets if more relevant) derived from operations within Mainland China. Stocks are weighted by free-float-adjusted market capitalisation with a 10% cap per stock and a maximum of 20 stocks within the final index.

As of 10 February 2017 the index contained 13 stocks with the largest constituents being Bank of China (10.3%), China Merchants Bank (10.2%), China CITIC Bank Corporation (10.1%), Agricultural Bank of China (10.0%), Industrial and Commercial Bank of China (9.9%), China Construction Bank (9.9%), Bank of Communications (9.9%), China Minsheng Banking Corp (9.8%) and Chongqing Rural Commercial Bank (7.1%).

The Hang Seng SCHK Mainland China Banks Index is currently calculated in real time in Hong Kong dollars, and has its end-of-day value calculated in US dollars, Hong Kong dollars and Chinese yuan.

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