Hang Seng Indexes include Tencent in the Newly Launched Index

June 23, 2020 4:25 am

Beijing (PingWest)—Hang Seng Indexes Company Limited (‘Hang Seng Indexes’) on Monday launched two new indexes—the Hang Seng Stock Connect China 500 Index and the Hang Seng Stock Connect China A 300 Index—to track the performance of large-cap Chinese stocks.

The Hang Seng Stock Connect China 500 Index measures the overall performance of the 500 largest Chinese companies that are listed in Hong Kong or mainland China, with the aim of capturing a comprehensive picture of listed Chinese companies.

Meanwhile, The Hang Seng Stock Connect China A 300 Index tracks the performance of the 300 largest A-shares. This is distinct from other similar onshore A-share indexes as a foreign ownership limit has been factored into the index design to facilitate offshore investors, the company said.

Constituents of both indexes must be eligible for trading under the Stock Connect schemes, it said, referring to the stock connect linking mainland China and Hong Kong.

Chinese tech giant Tencent and the state-owned China Construction Bank Corp was included in the China 500 Index's top 10 constituents, while the China A 300 Index has Kweichow Moutai Co. and Ping An Insurance (Group) Co. of China Ltd. among its top constituents.

Founded in Shenzhen, China, in 1998, Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004. 

As the gaming giant, Tencent benefits from the COVID-19 lockdown. According to a report from market intelligence firm App Annie, the weekly average download figures for mobile games hit a record 1.2 billion in March, as more people turn to the game for entertainment amid the lockdown. Tencent published Game for Peace -- the Chinese release of PUBG Mobile -- was the top-grossing game on iOS in Q1, followed by  Honor of Kings, another game developed by Tencent.