Hang Seng Index adds 2 new indexes to its Corporate Sustainability Index series

Hang Seng Index also granted licence to Hang Seng Investment Management to launch new fund to track the Hang Seng Corporate Sustainability Index.

Hang Seng Indexes Company Limited (“Hang Seng Indexes”) on Wednesday announced it will expand the Hang Seng Corporate Sustainability Index Series by adding two new benchmark indexes: the Hang Seng Corporate Sustainability Benchmark Index (“HSSUSB”) and the Hang Seng (China A) Corporate Sustainability Benchmark Index (“HSCASUSB”). 

The new indexes are designed to enlarge the constituent base of the index series to include more MidCap and SmallCap companies that have strong sustainability performance. The existing three tradable indexes will continue to facilitate investable product development. 

The two new benchmark indexes will have a varying number of constituents, including the top ESG-rated Hong Kong-listed companies selected from within the Hang Seng Composite Index and Mainland-listed companies selected from among the top 300 A-share companies in terms of market capitalization. In total, the HSSUSB and the HSCASUSB indexes will contain around 70 and 30 companies, respectively. The current number of constituents of the Hang Seng Corporate Sustainability Index and the Hang Seng (China A) Corporate Sustainability Index is 30 and 15, respectively.

The Hang Seng Corporate Sustainability Index Series is reviewed yearly. The results of the first review of tradable indexes and constituents of the new benchmark indexes will be announced on 12 August 2011. All changes will take effect and the new benchmark indexes will be launched on 5 September 2011. 

Mr. Vincent Kwan, Director and General Manager of Hang Seng Indexes, said, “The index series has been well received by the public since its launch in July 2010. We have also granted a licence to Hang Seng Investment Management Limited to launch a new fund which will track the Hang Seng Corporate Sustainability Index. This demonstrates the investment community’s demand for these indexes, which in turn helps drive socially responsible investment. We are delighted to provide the market a larger number of indexes and to increase the size of the pool of sustainable stocks within the indexes.” 

The tradable indexes are calculated and disseminated real-time every 15-seconds, while the benchmark indexes are daily indexes released after market close.