HKEX and CESC explore new Belt & Road Index initiative

HKEX has appointed China Exchanges Services Company Limited (CESC), a joint venture of HKEX, Shanghai Stock Exchange and Shenzhen Stock Exchange, to explore a Belt & Road Index in response to the market’s interest in a barometer for the Mainland’s Belt & Road Initiative.  

The index would be the first cross-border Belt & Road Index in the offshore market and would help investors seeking to find investment opportunities in the companies active in investment and business along the Belt & Road route. 

The proposed index is composed of companies whose shares can be traded through Stock Connect.

“The Belt & Road Initiative brings significant opportunities for global economic development by connecting over 60 countries and matching their needs and interests.  As an international financial centre and the most mature offshore RMB market, Hong Kong will play an important role in the Belt & Road Initiative,” said HKEX Chief Executive Charles Li. “A stock index would be a good way to start helping investors who are seeking exposure to companies with Belt and Road investments.”

“We are exploring an index to capture the stock performance of companies active in investment and business in Belt & Road countries,” said CESC Chief Executive Mao Zhirong. “We are devising the index compilation methodology and we aim to develop a tradable index that will be an objective and credible indicator tracking the development of the Belt & Road Initiative and facilitate investors in identifying investment opportunities.”

Further information will be provided in due course.