A cross-market benchmark for investors searching for enhanced yields in a low-interest rate environment
Hang Seng Indexes Company today launched the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index (‘new Index’). The new Index aims to reflect the overall performance of high-yield companies that are listed in Hong Kong or mainland China and operating in mainland China, Hong Kong, or Macau. In light of the low-interest rate environment and uneven economic recovery, many investors are exploring pivot investment strategies, which has driven growing interest in high-yield products. To help investors better navigate the dynamic economic environment, the new Index is composed of sizable companies that have demonstrated relatively lower price volatility and a persistent dividend payment record for the latest three fiscal years, with the aim of providing a benchmark for investors who are searching for yield enhancement to build an income-oriented investment portfolio. As of 30 July 2021, the simulated dividend yield of the new index was 8.4%. Daniel Wong, Director & Chief Index Officer at Hang Seng Indexes Company, said: “In the face of the recent market volatility, the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index is designed to offer onshore and offshore investors a diversified investment strategy for reaching yield targets by gaining exposure to a wide range of listed companies that have relatively lower price volatility.” The new index is calculated and disseminated in real-time at two-second intervals. More details about the new index are provided in the appendices that accompany this release.
About Hang Seng Indexes Company Limited
Hang Seng Indexes Company Limited (‘Hang Seng Indexes Company’) manages and compiles the Hang Seng Family of Indexes, which covers stocks listed in Hong Kong and Mainland China. Our index series includes the Hang Seng Index, the Hang Seng China Enterprises Index, and the Hang Seng TECH Index, as well as Stock Connect, Greater Bay Area, and sector-related indexes. As of the end of 2020, assets under management in products passively tracking indexes in the Hang Seng Family of Indexes had reached a total of about US$38 billion. Hang Seng Indexes Company is a wholly-owned subsidiary of Hang Seng Bank. For further information on the Hang Seng Family of Indexes, please visit www.hsi.com.hk