Deutsche Börse has launched the DAXglobal China Urbanization Index, comprising the 20 largest and most liquid companies from five DAXglobal China Sector Indices.
The constituents have to be listed at Hong Kong Stock Exchange (H-shares and red chips), Singapore Stock Exchange, NYSE or Nasdaq.
The index is aimed at investors who want to participate in the rapid growth of China’s cities – currently they are expanding by around 13 million inhabitants each year.
According to studies by the United Nations, China already has 100 cities with populations of over one million.
Experts predict that this trend will increase. The number of people living in urban areas is expected to grow from 40 per cent in 2008 to 70 per cent in 2050. This corresponds to an increase of 15 million new city dwellers per year.
In order to meet the challenges of the dynamic urbanization extensive infrastructure investments are needed, for example the enhancement of housing and expansion of public transportation systems. The DAXglobal China Urbanization Index reflects these growth segments.
Since 15 March 2010 Vontobel already offers a product on the new index denominated in Euro.
Heiko Geiger (pictured), executive director at Vontobel, says: “The DAXglobal China Urbanization Index fits extremely well into our theme strategy, which provides access to new interesting markets with exciting investment focuses for investors. Though the urbanization processes in China will be a huge challenge for politics, economics and society it will concurrently offer attractive investment chances for investors.”