Hang Seng Indexes to capture growth in China’s consumption sector

The company launched two new indexes as it sees new growth in the sector.

The Hang Seng Indexes Company has launched two new indexes as it sees new growth in the consumption sector of China, driven by a series of policies on facilitating Internet+ and e-commerce.

The new indexes are Hang Seng New Consumption Index and Hang Seng Shanghai-Shenzhen-Hong Kong New Consumption Index.

“According to China’s National Bureau of Statistics, online retail sales amounted to RMB11.76t in 2020, representing an increase of 10.9% compared with 2019, indicating that the rise of China’s technology-driven consumption brands and development of e-commerce are catalysing the transformation of China’s consumption model to weigh more on online consumption,” Daniel Wong, director and chief index officer at Hang Seng Indexes Company, said.

“Our two new consumption indexes offer onshore and offshore investors an investable way to capture opportunities arising from China’s consumption upgrade and make informed decisions about the cross-market allocation of their assets.”

The indexes are designed to capture the full picture of listed companies in traditional consumption sectors and online consumption sectors.

The Hang Seng New Consumption Index will cover Hong Kong-listed Greater China companies, whilst the Hang Seng Shanghai-Shenzhen-Hong Kong New Consumption Index will be a cross-market index.

It will cover Mainland-listed A shares and Hong Kong-listed shares that are eligible for southbound trading under the Stock Connect Scheme.