The series is comprised of the CES Shanghai-Hong Kong Stock Connect 300 Index (CES SHSC300) and CES Stock Connect Hong Kong Select 100 Index (CES SCHK100).
“With investors’ perception of the mainland and Hong Kong as two distinct markets expected to change as a result of SHSC [Shanghai-Hong Kong Stock Connect], the new index series will provide a benchmark for market participants to measure the performance of eligible stocks under SHSC,” the exchange said.
The CES SHSC300 consists of the top 200 A-shares which are listed on the Shanghai Stock Exchange and eligible for the Stock Connect and the top 100 Stock Connect-eligible stocks listed in Hong Kong.
The CES SCHK100 comprises the top 100 Hong Kong-listed stocks eligible for Stock Connect, excluding the dual-listed A+H shares.
“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. At the same time, the series enables financial institutions to develop new products in light of Shanghai-Hong Kong Stock Connect,” said Mao Zhirong, CESC chief executive.
The new index series will be disseminated via the China Securities Index Company in mainland China and the Hong Kong stock exchange.
The China Exchanges Services Company is a joint venture equally owned by the exchanges in Hong Kong, Shanghai and Shenzhen.
The newly-launched Stock Connect, which links the markets in Shanghai and Hong Kong, gives investors cross-border access. The initiative expands access for overseas investors buying China A-shares apart from the quotas allocated to them under the qualified foreign institutional investors and RMB QFII licenses.
Under the northbound trading link, investors, through their Hong Kong brokers and a securities trading service company, can place orders to trade stocks listed on Shanghai Stock Exchange.
Under the southbound trading link, eligible investors, through Mainland securities firms and a securities trading service company, are able to place orders to trade eligible shares listed on the Stock Exchange of Hong Kong.
