IB Added to “Hang Seng Corporate Sustainability Index Series”

Recently, the Hang Seng Indexes Company Limited published the list of constituent stocks of the soon to be launched “Hang Seng Corporate Sustainability Index Series”. Owing to its great efforts and outstanding performance in sustainable development, the Industrial Bank (IB) has been included in the two indexes of “Hang Seng (China A) Corporate Sustainability Index” and “Hang Seng (Mainland and HK) Corporate Sustainability Index”. IB was listed second in the constituent stocks of the “Hang Seng (China A) Corporate Sustainability Index” with a proportion of 10.32%.

The “Hang Seng Corporate Sustainability Index Series” is the first corporate sustainability index series covering both HK and Mainland. It includes three indexes, namely Hang Seng Corporate Sustainability Index, Hang Seng (China A) Corporate Sustainability Index and Hang Seng (Mainland and HK) Corporate Sustainability Index. The first two indexes include 30 Hong Kong-listed companies and 15 Mainland-listed companies respectively, which are all leaders in sustainability, while the Hang Seng (Mainland and HK) Corporate Sustainability Index is a cross-market index that is comprised of the constituent stocks of the other two indexes.

Hang Seng Indexes Company Limited employs a stringent process for constituent selection that involves selecting the companies with the highest ratings in a sustainability assessment from the top 150 Kong-listed and Mainland-listed companies for market value estimated in the principle of volume. The sustainability assessment indicators cover the three categories of environment, social and governance (also called ESG). The assessment is based on information from company websites, annual reports, market bulletins and regulatory information. Special attention is paid to performance in regulating and controlling sustainability risks and opportunities. As John Tsang Chun-wah, Financial Secretary of Hong Kong SAR Government said at the opening ceremony, such an index series will help the public to understand the efforts and results of companies in terms of sustainability and identify companies focusing on long-term value.

Over the years, IB has taken continual steps to improve its corporate governance and has been consistently devoted to the harmonious sustainable development of the company, environment, society and the economy. It has been nominated for the “Sustainable Banking Awards” of the Financial Times for four successive years and is the only financial institution in China to have won the award so far. IB’s listing in the “Hang Seng Corporate Sustainability Index Series” not only demonstrates the bank’s capacity for sustainable development, but also bears testament to the trust and support of the capital market and investors.

Background:

“Hang Seng Corporate Sustainability Index Series” includes three indexes comprising of Hong Kong-listed and Mainland-listed companies which are leaders in sustainability and that have considerable market values and volumes. The constituent stocks of the Hang Seng Corporate Sustainability Index are 30 Hong Kong-listed companies, most of which are constituent stocks in the HSI main board in the unit of HK dollar, such as China Mobile and HSBC. The constituent stocks of the “Hang Seng (China A) Corporate Sustainability Index” are 15 Mainland-listed companies, including the China Merchants Bank, Industrial Bank etc, in the unit of RMB. The Hang Seng (Mainland and HK) Corporate Sustainability Index is a cross-market index that comprises of the constituent stocks of the two former indexes, in the unit of USD. The series will start on July 26, 2010 and will be published in real-time.