Bureaus Exclusive

Industrial Bank selected for HK 'Hang Seng Indexes'

By Hu Meidong and Lu Ting (China Daily Fujian Bureau)
Updated: 2010-07-29 10:37

Hong Kong Hang Seng Indexes Company Limited announced the constituent list of the upcoming Hang Seng Corporate Sustainability Index Series. Industrial Bank was selected into the "Hang Seng (China A) Corporate Sustainability Index" and the "Hang Seng (Mainland and HK) Corporate Sustainability Index." for its consistent efforts for and outstanding performance in sustainable development. With 10.32 percent shares, it ranked second place in the Constituent Stocks of A Sustainable Development Unit Hang Seng Enterprises Index.

Hang Seng Corporate Sustainability Index Series is the first of its kind in Hong Kong that covers companies in both Hong Kong and mainland China. It is comprised of three indexes: the Hang Seng Corporate Sustainability Index, the Hang Seng (China A) Corporate Sustainability Index and The Hang Seng (Mainland and HK) Corporate Sustainability Index. The former two include 30 Hong Kong-listed and 15 Mainland-listed corporate sustainability leaders respectively.

While the Hang Seng (Mainland and HK) Corporate Sustainability Index is a cross-market index that combines the constituents of the other two indexes, Hang Seng Index Limited Company has set very strict procedures on the selection of constituents.

The constituents of this investable index series are selected by ranking listed companies on Hong Kong stocks and A stocks to identify the top 150 in terms of market value.

Hang Seng Indexes Company Limited selects the highest-rated companies in the sustainability assessment. Among them, assessment on the sustainable development encompasses environmental, social and corporate governance performance (also known as ESG) and it is based on company websites, annual reports, market briefings and regulatory information.

It pays particular attention to the company performance on sustainability in control of the risks and opportunities. Just as Zeng Junhua, the Hong Kong SAR Government Financial Secretary said in the opening ceremony, the index series will help the public clearly understand enterprises' efforts and results on sustainable development, and allow investors to identify visionary corporations that emphasize long-term value for shareholders.

For several years, the Industrial Bank has continuously improved corporate governance and has been committed to the exploration and practice of harmonious and sustainable development among corporations and environment, and society and economy.

Being selected into the "Hang Seng Corporate Sustainability Index Series," Industrial Bank has shown that it possesses a good capacity for sustainable development. It also illustrates that Industrial Bank has won the trust and support of the capital market and investors.