HANG SENG Indexes Company Limited (HSIL) has been a pioneer in developing a broad array of innovative indexes for the Hong Kong and mainland China markets. At The Asset Triple A Private Capital Awards 2023, the company won as the Best Index Provider, Thematic, Hong Kong, and the Editors' Triple Star award for its Hang Seng Stock Connect China A Low Carbon Select Index. In this question-and-answer session, HSIL Chief Executive Officer Anita Mo shares how the company is leveraging its vast experience and capabilities as well as the latest technology to meet clients' diverse objectives.
Please give us an overview of the unique strengths and capabilities of HSIL in ESG and sustainability indexing.
HSIL introduced the Hang Seng Corporate Sustainability Index Series in 2010. We have launched 21 ESG-related indexes so far, adopting a number of ESG investment strategies, including best-in-class, ESG factor integration, sustainable development themes, negative screening, etc., to meet the needs of different investors.
All our ESG indexes are based on world-class, high quality datasets provided by leading data providers, covering ESG ratings, climate metrics, product involvement, and adherence to the United Nations Global Compact principles. We also provide innovative and forward-looking solutions by leveraging next generation technology to identify potential industry leaders through our thematic indexes. Our customized solutions, powered by our experienced index operation, research and ESG teams, offer a unique advantage to our clients navigating the complex and ever-changing ESG market.
Our ESG indexes have been well recognized by market participants. There are seven ESG-related investment products, including five ETFs, with assets under management of around HK$7 billion (US$892 million) as of end-Ql 2023. About half of the listed products of ESG funds authorized by the Securities and Futures Commission are tracking our ESG indexes. Also, two trustees are launching Mandatory Provident Fund (MPF) products that will track the performance of the HSI ESG Enhanced Index, in the second half of 2023.
Our dedication to excellence and innovation enables us to deliver tailored solutions that meet the evolving needs of our clients and support their sustainability initiatives and enhance their portfolio returns in a sustainable manner.
What are some of the leading ESG indexes that HSIL offers its clients who are transitioning to sustainability investing?
To cite an example, we launched the Hang Seng Stock Connect China A Low Carbon Select Index, which enables investors to decarbonize their portfolios and address long-term climate risks.
The index constituents are screened based on compliance with the United Nations Global Compact Principles, and involvement in controversial weapons, tobacco, or thermal coal. The remaining constituents with relatively lower carbon emission intensity will have higher tilt factor and hence weighting, and vice versa.
As of end-June 2023, the Hang Seng Stock Connect China A Low Carbon Select Index has delivered a 45% reduction in the weighted average carbon intensity relative to the base index. The index is tracked by the first low-carbon-themed A-share ETF in Hong Kong, demonstrating HSIL's leading role in formulating all around ESG solutions for investors to diversify their portfolio strategies.
HSIL also offers other low-carbon indexes (e.g., the Hang Seng Climate Change 1.5°C Target Index and the HSI Low Carbon Index) to cater for different market needs and climate objectives.
What are some of the major thematic indexes that HSIL has launched in the past 12-18 months?
HSIL launched the Hang Seng China A Power Grid Equipment Index in 2022, which reflects the performance of largest 100 companies listed in mainland China that are involved in power grid equipment.
One of the index's distinctive features is its accessibility to a precise classification system based on the constituent companies' operating footprints. With such an industry classification that goes into granular details, HSIL enables investors to capture niche and innovative investment opportunities arising from the power grid equipment industry.
We have also launched the Hang Seng Megatrend Index series, which is a suite of equity indexes to help investors capture opportunities arising from innovative and transformative trends. Over the past three years, we have designed and successfully launched indexes focusing on innovative and disruptive themes, such as e-commerce, NextGen communications, Generation Z, metaverse, and genomics & oncology.
How do you help clients by building new thematic indexes that fit their requirements?
ln developing our indexes, we have combined meticulous classification with strategic weighting. We also utilize next-generation technology, such as the Natural Language Processing (NLP) algorithm technology, enabling us to extract useful information from massive amounts of information in a listed company's public disclosures, so as to further classify this company by thematic relevancy. Such Al-assisted technology greatly expands our capabilities, facilitates the discovery of new themes, and enhances our analyses.
Looking forward, HSIL will keep abreast of the latest market developments, with the latest technology as well as its deep industry expertise and experience, to help clients capture monumental opportunities by launching innovative index suites and services that meet their evolving needs.
For more information, please contact
Hang Seng Indexes Company Limited
Address: 83 Des Voeux Road, Central, Hong Kong
Tel: (852) 2877 0704
Email: firstname.lastname@example.org Website: www.hsi.com.hk
我们的定制解决方案，经指数运营、研究和 ESG资深团队精心打造，为客户应对复杂多变的 ESG市场提供了独特的优势。
我们的ESG指数得到了市场的高度认可。截至2023年第一季度，七种与ESG相关投资产品（ 包括五支ETF） 管理的资产规模约为70 亿港元（8.92亿美元）。证券及期货事务监察委员会认可的ESG基金上市产品中，大约一半正在跟踪我们的ESG指数。此外，还有两家信托机构将于 2023年下半年推出跟踪恒指ESG增强指数表现的强制性公积金(强积金)产品。
地址: 香港德辅道中83号 电话：(852) 2877 0704
电邮: email@example.com 网站: www.hsi.com.hk