Hang Seng releases high div China-HK indices

Hang Seng Indexes Company has launched the Hang Seng SCHK High Dividend Yield Screened Index and Hang Seng SCHK China Central SOEs High Dividend Yield Index, as it continues to expand its range of factor indices targeted at investors seeking to diversify their portfolios.

With the rising popularity of dividend yield strategy among factor indices, there has been a strong net inflow for dividend related exchange-traded funds (ETFs) in Apac during the previous three years. The index provider believes a defensive investment solution such as the dividend yield strategy could deliver a relatively stable performance for income-oriented investors and enable them to navigate the dynamic economic environment.

The Hang Seng SCHK High Dividend Yield Screened Index reflects the performance of high-yield large-cap and mid-cap securities listed in Hong

Kong that are eligible for trading via the Southbound trading link of Stock Connect Scheme. This new index selects high dividend-paying and financially sound companies, aiming to offer sustainable income, avoid yield traps and create long-term value for investors.

To capitalise on the growing interest in central State-Owned Enterprises (SOEs) recently, the launch of the Hang Seng SCHK China Central SOEs High Dividend Yield Index tracks the performance of high-yield securities listed in Hong Kong with central SOEs as the largest shareholder, which are eligible for trading via the Southbound trading link of Stock Connect Scheme.

Amid SOEs reform gaining momentum continuously, the new index will help investors to seize investment opportunities related to these strengthening SOEs in China as well as harvesting stable incomes over the long run.

The two new indices are calculated and disseminated in real-time at two second intervals and have been designed to enhance the risk adjusted return of the portfolio, through capturing one or more long-term factor risk premiums.