Hang Seng Indexes has launched the HSI ESG Index and the HSCEI ESG Index, expanding its portfolio of benchmarks for investors interested in socially responsible investment strategies.
The company also added the Hang Seng Stock Connect Greater Bay Area Innovation Top 50 Index to its Hang Seng Stock Connect Greater Bay Area Index Series.
The HSI ESG Index and the HSCEI ESG Index have the same list of constituents as the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI) respectively, but adopt different constituent weightings. The weighting of each constituent in the two new indexes is adjusted according to its environmental, social and corporate governance (ESG) score. The weightings of constituents with relatively high ESG scores will be increased, while weightings of those with relatively low ESG Scores will be decreased.
As a result, the overall ESG score of each of these two new indexes will be higher than that of their respective base index. Constituents’ ESG scores are based on sustainability assessments undertaken by Hong Kong Quality Assurance Agency (HKQAA), an independent and professional assessment body, using its proprietary sustainability assessment and rating framework. The assessment includes examination of core ESG performance indicators.
Vincent Kwan, Chief Executive Officer, Hang Seng Indexes Company Limited, says: “We launched our Hang Seng Corporate Sustainability Index Series in 2010. ESG investing is continuing to gain momentum in market around the world. Our new HSI ESG Index and HSCEI ESG Index provide bases for product issuers to develop investment products linked to the portfolios of our flagship indexes but with a greater emphasis on ESG.”
Kwan adds: “In addition to the launch of these new ESG indexes, we have also expanded our Hang Seng Stock Connect Greater Bay Area Index Series with the launch of the Hang Seng Stock Connect Greater Bay Area Innovation Top 50 Index. We already provide the most comprehensive index series measuring various performance aspects of companies operating in the economically dynamic Greater Bay Area. The launch of this latest index further reinforces our reputation for acting swiftly to meet the new needs and interests of investors.”
The Hang Seng Stock Connect Greater Bay Area Innovation Top 50 Index is a cross-market index that is categorised as a Factor & Strategy index. This latest addition to the Hang Seng Stock Connect Greater Bay Area Index Series selects the top 50 stocks with relatively higher research & development investment and stronger growth performance in selected industries. With this new addition, the number of indexes in the Hang Seng Stock Connect Greater Bay Area Index Series has increased to 19.
The three new indexes are calculated and disseminated in real-time at two-second intervals. More details about the HSI ESG Index, the HSCEI ESG Index and the Hang Seng Stock Connect Greater Bay Area Innovation Top 50 Index are provided in accompanying appendices.
