Hang Seng Indexes launches two new ESG benchmarks, expands Greater Bay Area Index series tracking innovative firms

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The HSI ESG Index and the HSCEI ESG Index have the same list of constituents as the Hang Seng Index and the Hang Seng China Enterprises Index, but adopt different constituent weightings

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Vincent Kwan Wing-shing, CEO of Hang Seng Indexes Company, attends a press conference to announce the launch three new benchmarks, on Tuesday. Photo: Tory Ho

Enoch Yiu

Published: 8:09pm, 14 May 2019Updated: 11:18pm, 14 May 2019

Hang Seng Indexeson Tuesday launched two new indices tracking the environmental, social and corporate governance performance of listed companies, expanding its portfolio of benchmarks for investors interested in socially responsible investment strategies.

It also launched a third index that tracks innovative companies in the Greater Bay Area.

The wholly-owned subsidiary of Hang Seng Bank manages and compiles gauges covering stocks and bonds listed in Hong Kong and mainland China markets,

The HSI ESG Index and HSCEI ESG Index have the same 50 constituent stocks as the Hang Seng Index and Hang Seng China Enterprises Index, but with different weightings.

(From left) Anita Mo, director at Hang Seng Indexes; Vincent Kwan Wing-shing, CEO of Hang Seng Indexes; and Daniel Wong, head of research and analytics at Hang Seng Indexes, attend a press conference to launch the new indices, on Tuesday. Photo: Tory Ho

Companies with higher ESG scores will have higher weightings in the new indices. For example, Sun Hung Kai Properties, a standout ESG performer, has a 1.63 per cent weighting among all blue chips in the Hang Seng Index, but it has a 4.24 per cent weighting in the HSI ESG Index.