China Central SOEs ESG Leaders Index
Hang Seng Indexes Company announced the launch of the Hang Seng SCHK China Central SOEs ESG Leaders Index, which aims to help investors track sustainable investment opportunities in China’s state-owned enterprises.
As ESG has received increasing attention in the Chinese market, regulators have begun to push state-owned enterprises to strengthen ESG information disclosure and pursue sustainable development. Under the goals of China’s 2030 carbon peak and 2060 carbon neutrality, state-owned enterprises will become the focus of ESG investment.
Related Post: ICMA Releases White Paper on China ESG Practices
Introduction to China Central SOEs ESG Leaders Index
The China Central SOEs ESG Leaders Index is constructed using the best-in-class method, which includes 40 listed companies that can be traded by Hong Kong Stock Connect. These companies have lower ESG risks. The index’s base date is set at December 31, 2018, and the cumulative return on the index is 16.1% through June 30, 2023.
The benchmark value of the index is set at 6000, and the constituents will be adjusted every quarter. China Central SOEs ESG Leaders Index is weighted by market capitalization. The index is denominated in Hong Kong dollars and is calculated and published every two seconds.
Constituents of China Central SOEs ESG Leaders Index
Investors can search the new index using HSSCSEL in Bloomberg and HSSCSEL in Refinitiv. As of June 30, 2023, the constituents with the highest weightings in the index are:
| Code | Company Name | Weightings (%) |
| 1109 | China Resources Land Limited | 8.5% |
| 981 | Semiconductor Manufacturing International Corp. | 8.3% |
| 291 | China Resources Beer (Holdings) Co. Ltd. | 8.1% |
| 941 | China Mobile Limited | 8.1% |
| 2628 | China Life Insurance Co. Ltd. | 8.0% |
| 2319 | China Mengniu Dairy Co., Ltd. | 7.7% |
| 688 | China Overseas Land & Investment Limited | 6.4% |
| 728 | China Telecom Corp. Ltd. | 4.6% |
| 788 | China Tower Corp. Ltd. | 3.7% |
| 1099 | Sinopharm Group Co., Ltd. | 3.2% |
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