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CICC CSI Select 100 ETF Lists on SEHK


China International Capital Corporation Hong Kong Asset Management Limited, a wholly-owned subsidiary of China International Capital Corporation Limited (CICC), has launched the CICC CSI Select 100 ETF on the Stock Exchange of Hong Kong (SEHK).

The ETF tracks CSI CICC Select 100 Index which consists of 100 Shanghai and Shenzhen listed stocks of industry front-runners that have solid competitive advantages and can benefit from China’s ongoing economic transformation. The Index is developed by the award-winning CICC Research Division who has comprehensive coverage and in-depth local knowledge of China market.
The Index is a free float market capitalisation weighted index designed to select top 100 A-shares companies which have high and stable return on equity, high dividend yields and high earnings growth rates using multi-factor smart beta methodology amongst a stock pool which is comprised of the A-Shares. This strategy has been consistently outperforming some mainstream total return indices.
The Index screens for qualifying equities based on the following rationales:
• As China’s economy is transforming into a high-quality growth model, Chinese consumers begin to prefer higher-end products and players in different industries are consolidating and moving up the value chain.
• China’s economic transformation would benefit industry leaders, which are not just companies with large capitalization, but more importantly, dominant players with solid competitive advantages and wide economic moats. Such companies tend to deliver high and sustainable return on equities (ROEs).
• Based on the above, the Index strategically ranks and filters stocks based on individual players’ sustainable ROEs and such forms a distinctive feature of the Index. Fundamental factors including dividend yields and earnings growth rates are used to select the top 100 stocks and the individual constituents are weighted in accordance to their free float market capitalisation.
CICC’s Research Division is known for its leading position in financial research in China. The Research Division’s unbiased and rigorous research has earned them a reputation as an influential research institution in China’s capital market. From 2006 to 2017, the Research Division has won Asiamoney’s Best for Overall Country Research in China twelve times consecutively.
“CICC is devoted to helping clients with top-notch research capabilities,” says Dr Liang Hong, Managing Director and Head of CICC Research Division. “We are proud to provide this ‘quantamental’ product in the format of an ETF for our clients.”
The launch of the ETF marks another milestone for China International Capital Corporation Hong Kong Asset Management Limited which provides a wide range of asset management products and services for overseas clients.
“We are excited to launch this innovative ETF in Hong Kong,” says Lin Ning, Managing Director of China International Capital Corporation Hong Kong Asset Management Limited. “We are convinced this is the right product for savvy investors to get involved in the Chinese stock market.”

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