In recent days, the Hang Seng Indexes Company Limited announced the constituent list of the soon to be launched “Hang Seng Corporate Sustainability Index Series”. The Industrial Bank was successfully listed in the “Hang Seng (China A) Corporate Sustainability Index” and “Hang Seng (Mainland and HK) Corporate Sustainability Index” owing to its unremitting efforts and outstanding performance in sustainable development. Moreover, the bank ranks 2nd in the constituent stock of the “Hang Seng (China A) Corporate Sustainability Index” with a weighting of 10.32%.
“Hang Seng Corporate Sustainability Index Series” is the first corporate sustainability index series to cover both Hong Kong and the Mainland. It includes 3 indexes, namely Hang Seng Corporate Sustainability Index, Hang Seng (China A) Corporate Sustainability Index and Hang Seng (Mainland and HK) Corporate Sustainability Index. The Hang Seng Corporate Sustainability Index and the Hang Seng (China A) Corporate Sustainability Index include 30 Hong Kong listed companies and 15 mainland listed companies respectively, all of which are leaders in the field of sustainable development. The Hang Seng (Mainland and HK) Corporate Sustainability Index is an inter-market index, composing of the constituent stock from the other two indexes. The Hang Seng Indexes Company Limited exercised an extremely stringent process of selection for constituent stock. After appraising the turnover guideline performance of the top 150 companies (in terms of market value) in the Hong Kong stock market and Mainland A share market, the companies with the highest sustainable development rating were selected. The evaluation indexes for sustainable development included environment, society and corporate governance (also called ESG). The evaluation was conducted on the basis of company websites, reports, market briefings and regulatory information, and especially focusing on the company's performance in the management of sustainable risks and opportunities. Much like HKSAR Financial Secretary Mr. John Tsang Chun-wah said at the launch ceremony, the index series will help the public to clearly see the efforts and the results of companies in regard to sustainable development, and will therefore allow them to identify those companies with long-term potential.
The Industrial Bank has made constant efforts over recent years to improve its corporate governance. It has long being committed to innovating and taking action so that the company can exist in a sustainable and harmonious manner with the environment, society and economy. The bank has been nominated in the Sustainable Banking Awards for four consecutive years by the Financial Times, and is first Chinese to have been awarded this accolade. IB's listing in the “Hang Seng Corporate Sustainability Index Series” not only demonstrates the capacity of the bank in sustainable development, but also indicates that it is trusted and favored by capital markets and investors.
Background Information:
The “Hang Seng Corporate Sustainability Index Series” includes 3 indexes. The indexes include listed Hong Kong and Mainland companies with substantial market value, high turnover and leading performance in corporate sustainability. The constituent stock of the “Hang Seng Corporate Sustainability Index Series” comprises of 30 companies listed in Hong Kong. The majority of them are constituent stocks in the HSI main board, such as China Mobile and HSBC Holdings. This index is calculated in Hong Kong dollars. The constituent stock of the “Hang Seng (China A) Corporate Sustainability Index” includes 15 companies listed in the Mainland, such as the China Merchants Bank and IB. This index is calculated in RMB. The “Hang Seng (Mainland and HK) Corporate Sustainability Index” is an inter-market index whose constituent stock is a combination of the forgoing two indexes. This index is calculated in US dollars. The index will launch on July 26, 2010 and will be released in real time.