Hang Seng Indexes Quarterly

Transcription

1 Hang Seng Indexes Quarterly Index Research: Hang Seng Stock Connect Big Bay Area Composite Index nd Quarter

2 Hang Seng Family of Indexes MarketCap Weighted Indexes Factor & Strategy Indexes Hang Seng Index Hang Seng China A Industry Top Index Hang Seng China Enterprises Index Hang Seng China A Top 100 Index Hang Seng China (listed) 100 Index Hang Seng China Enterprises Equal Weighted Index Hang Seng China (listed) 25 Index Hang Seng China Enterprises Smart Index Hang Seng China 50 Index Hang Seng CSI Shanghai AH Smart Index Hang Seng ChinaAffiliated Corporations Index Hang Seng Currency Hedged Index Series Hang Seng Composite Index Hang Seng Dividend Point Index Series Hang Seng Composite Industry Indexes Hang Seng Equal Weighted Index Hang Seng Composite Size Indexes Hang Seng Futures Index Series Hang Seng Foreign Companies Composite Index Hang Seng Futures Short & Leveraged Index Series Hang Seng Global Composite Index Hang Seng High Beta Index Hang Seng H40 Reference Index Hang Seng High Dividend Yield Index Hang Seng HK 35 Hang Seng Low Volatility Index Hang Seng SCHK exah Companies Index Hang Seng Risk Adjusted Index Series Hang Seng SCHK HK Companies Index Hang Seng SCHK High Yield Low Volatility Index Hang Seng SCHK Mainland China Companies Index Hang Seng SCHK Quality Growth Low Volatility Index Hang Seng Stock Connect Big Bay Area Composite Index Hang Seng Short & Leveraged Index Series Hang Seng Stock Connect China AH (A) Index Hang Seng Stock Connect China AH Premium Index Hang Seng Stock Connect China AH (A+H) Index Hang Seng Stock Connect China AH Smart Index Hang Seng Stock Connect China AH (H) Index HSI Volatility Index Hang Seng Stock Connect Index Hang Seng Stock Connect MidCap & SmallCap Index Hang Seng Stock Connect SmallCap Index listed Mainlandlisted Crossmarket Stock Connect Eligible Hang Seng Indexes Quarterly 2nd Quarter

3 Sector Indexes Sustainability Indexes Hang Seng China HFinancials Index Hang Seng Consumer Goods & Services Index Hang Seng Healthcare Index Hang Seng Internet & Information Technology Index Hang Seng REIT Index Hang Seng SCHK Mainland China Banks Index Hang Seng (China A) Corporate Sustainability Benchmark Index Hang Seng (China A) Corporate Sustainability Index Hang Seng (Mainland and HK) Corporate Sustainability Index Hang Seng Corporate Sustainability Benchmark Index Hang Seng Corporate Sustainability Index Hang Seng SCHK New Economy Index Hang Seng Sector Index Series Fixed Income Indexes Hang Seng Shenzhen Index Series Hang Seng ibond Index Series Hang Seng Markit iboxx Offshore RMB Bond Index family listed Mainlandlisted Crossmarket Stock Connect Eligible Hang Seng Indexes Quarterly 2nd Quarter

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5 Company Profile Hang Seng Indexes Company Limited ( Hang Seng Indexes ), a whollyowned subsidiary of Hang Seng Bank, was established in 1984 and is s leading index compiler covering and mainland China markets. Hang Seng Indexes calculates and manages the Hang Seng Family of Indexes. Starting in 1969 with the launch of the Hang Seng Index, now widely recognised as the barometer of the stock market, Hang Seng Indexes has been at the forefront of the market, developing numerous market measures to help investors make their investment decisions. Indexes in the Hang Seng Family of Indexes are grouped into five categories MarketCap Weighted Indexes, Factor & Strategy Indexes, Sector Indexes, Sustainability Indexes and Fixed Income Indexes then classified as listed, Crossmarket or Mainlandlisted according to where their constituents are listed. Currently, the Hang Seng Family of Indexes comprises over 400 realtime and daily indexes. Going forward, Hang Seng Indexes will continue to broaden its index series to meet the widening spectrum of investor demand for index investment solutions. If you prefer not to receive marketing materials from Hang Seng Indexes Company Limited in the future, please notify us by to info@hsi.com.hk with the word unsubscribe in the subject line or contact us at (852) Hang Seng Indexes Quarterly 2nd Quarter

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7 Contents Features What s New Index Update Index Research Index Information Index Products Index Performance Index Rankings Other Information Hang Seng Industry Classification System 19 Hang Seng Indexes Quarterly 2nd Quarter

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9 What s New Hang Seng Indexes Launched Hang Seng Stock Connect Big Bay Area Composite Index In May 2018, Hang Seng Indexes Company Limited ( Hang Seng Indexes ) launched the Hang Seng Stock Connect Big Bay Area Composite Index. The index aims to reflect the performance of companies that are listed in and/or mainland China and that mainly operate in the GuangdongMacao Big Bay Area ( Big Bay Area ). The index will have 250 constituents companies. The index universe includes Stock Connect eligible listed stocks and Mainlandlisted AShares that mainly operate in the Big Bay Area. Mr Daniel Wong, Director & Head of Research and Analytics at Hang Seng Indexes, said: The Big Bay Area is a theme that is of increasing interest to investors in and the Mainland. The launch of Hang Seng Stock Connect Big Bay Area Composite Index is responding to this new market development. We will continue to observe Big Bay Area development and plan, with the aim of identifying the potential for launching a variety of thematic indexes that use the Hang Seng Stock Connect Big Bay Area Composite Index as the universe for constituent selection. The launch of a series of Big Bay Area indexes will facilitate the market to develop indexlinked products, and further integrate the real economy and financial development. This will help drive the economic progress of the Big Bay Area. Hang Seng Indexes Launched Hang Seng Currency Hedged Index Series In May 2018, Hang Seng Indexes launched the Hang Seng Currency Hedged Index Series ( Index Series ) which is designed to help overseas investors manage currency exposure and mitigate currency risk. The Index Series consists of eight currency hedged indexes with four hedging currencies RMB, EUR, GBP and JPY based on the Hang Seng Index and the Hang Seng China Enterprises Index. The new indexes hedge 100% to the base currency, HKD, of the underlying index constituents. Mr Daniel Wong, Director & Head of Research and Analytics at Hang Seng Indexes, said: This new series of currency hedged indexes assists overseas investors who are interested in minimising the currency risks arising from foreign investment. We will continue to monitor market developments and launch further indexes with different underlying indexes and hedging currencies in line with the evolving needs of investors. Hang Seng Indexes Announced the Consultation conclusions on the eligibility of foreign companies, stapled securities and weighted voting right companies for inclusion in the Hang Seng Composite Index Hang Seng Indexes Company Limited ( Hang Seng Indexes ) announced the conclusions of its consultation of market participants on the eligibility of 1) foreign companies, 2) stapled securities and 3) weighted voting right( WVR ) companies for inclusion in the Hang Seng Composite Index ( HSCI ). Hang Seng Indexes received responses from a wide spectrum of market participants and carefully considered their feedback and opinions. The coverage of the HSCI are expanded to include: 1) Foreign companies foreign companies with their primary listing in will be eligible for inclusion. 2) Stapled securities stapled securities with a legal structure that is identical to the four existing stapled securities in the market will be eligible for inclusion. 3) WVR companies primary and secondarylisted (under Chapter 19Cof the Listing Rules) Greater China WVR companies will be eligible for inclusion. Hang Seng Indexes Licensed Hwabao WP Fund to Use Hang Seng HK 35 as Basis for LOF Hang Seng Indexes Company Limited ( Hang Seng Indexes ) has licensed the Hang Seng HK 35 ( HSHK35 ) to Hwabao WP Fund Management Co., Ltd. ( Hwabao WP Fund ) to serve as the underlying index for the creation of a listed openended fund ( LOF ). The LOF was listed on the Shenzhen Stock Exchange in April. Comprised of 35 largest companies listed in, the HSHK35 reflects the performance of largecap companies with sales revenue (or profits or assets if more relevant) generated from and/or areas outside mainland China. The new LOF will bring the number of exchangetraded products linked to indexes in the Hang Seng Family of Indexes to 69 with listings on 17 different stock exchanges across the world. By the end of March 2018, assets under management in exchangetraded products linked to indexes in the Hang Seng Family of Indexes had reached a total of more than US$29 billion. Hang Seng Indexes Quarterly 2nd Quarter

10 Index Update Hang Seng Stock Connect China AH Premium Index Performance of the Hang Seng Stock Connect China AH Premium Index 2018Q2 Highlights: The Hang Seng Stock Connect China AH Premium Index ( HSAHP ) closed at at the end of the second quarter of 2018, indicating that A shares of duallisted companies were, on average, 18% more expensive than their H share counterparts. When compared with the previous quarter, the medians of AH Price Ratio of all industries have dropped, implying a narrowing of the price gap between A shares and H shares in general. Past 1year HSAHP Performance High Low Close 3M Y Jun17 Sept17 Dec17 Mar18 Jun18 Distribution of AH Price Ratios as at Latest Quarterend 14 C&I UTI FIN PROP No. of Companies >250 AH Price Ratio C&I: Commerce and Industry FIN: Finance UTI: Utilities PROP: Properties Industry Max. AH Price Ratio by Industry as at the End of the Latest Two Quarters 2018Q2 2018Q1 Min. Avg.* Median Max. Min. Avg.* Median C&I UTI FIN PROP Based on Hang Seng Index Industry Classification * Simple average of AH Price Ratio 3 Hang Seng Indexes Quarterly 2nd Quarter

11 Index Update Hang Seng Sector Index Series Performance of the Hang Seng Sector Index Series 2018Q2 Highlights: The Hang Seng Mainland Oil & Gas Index ( HSMOGI ) was the bestperforming index in the Hang Seng Sector Index Series ( HSSIS ), with a positive return of 7.26%. The volatility of the Hang Seng Mainland Properties Index ( HSMPI ) was the highest in the series, exceeding 36%. The quarterly index movement range of the Hang Seng Mainland Properties Index ( HSMPI ) was approximately 1551 index points, the largest in the series. 1Year Rebased Performance HSITHI HSMHI HSMPI HSMBI HSMOGI HSSSI Jun17 Sep17 Dec17 Mar18 Jun18 HSITHI HSMBI HSMHI : Hang Seng IT Hardware Index : Hang Seng Mainland Banks Index : Hang Seng Mainland Healthcare Index HSMOGI HSMPI HSSSI : Hang Seng Mainland Oil & Gas Index : Hang Seng Mainland Properties Index : Hang Seng Software & Services Index As at 29 June 2018 Index 3mth Index Return YTD 1yr 1year Ann. Vol. Closing Index Level (a) Range* Index Point (b) (b/a)% HSITHI 14.89% 23.90% 15.36% 26.14% % HSMBI 10.06% 1.36% 8.46% 22.44% % HSMHI 0.91% 13.70% 42.96% 25.72% % HSMOGI 7.26% 10.66% 28.91% 22.18% % HSMPI 9.71% 1.57% 36.35% 36.22% % HSSSI 5.25% 1.24% 15.79% 26.82% % *Quarter HighQuarter Low Hang Seng Indexes Quarterly 2nd Quarter

12 Index Research Hang Seng Stock Connect Big Bay Area Composite Index Capturing the Growth Potential of GuangdongMacao Big Bay Area Highlights: The Hang Seng Stock Connect Big Bay Area Composite Index ( HSBBAC ) tracks economic growth in the Guangdong Macao Big Bay Area ( BBA ) and provides investors with a tool for identifying investment opportunities in the region. The weighting distribution of the index reflects the strategic focus of the cities and Special Administrative Regions ( SARs ) in the BBA. For example, Information Technology accounts for a significant weighting of Shenzhen since the city is establishing itself as a centre for innovation. For, a key international financial centre, the Financials sector is well represented. The HSBBAC has achieved an overall performance of 49% since 2015, outperforming the flagship indexes of the and mainland China stock markets, implying that the Big Bay Area has experienced solid growth in the period under analysis. GuangdongMacao Big Bay Area In March 2017, Chinese Premier Li Keqiang announced a plan for the development of a city cluster in the Guangdong Macao Big Bay Area. The plan is part of China s urbanisation push, under which city clusters will leverage the strength of firsttier cities to boost growth in lessdeveloped ones. The 56,500 square kilometre BBA encompasses nine cities (Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing) and two SARs ( and Macao). The aim of the BBA is to combine, Macao and the cities of Guangdong s Pearl River Delta in order to create a region with an economic strength that is comparable to other bay areas around the world, most notably the San Francisco Bay Area, Greater New York and the Tokyo Metropolitan Area. To succeed, the relevant infrastructure, policies and regulations will all have to be in place to ensure people, goods and services are able to flow freely within the area. The BBA s nine cities and two SARs have a total population of nearly 67 million. This is significantly higher than the world s current largest city cluster, the Tokyo Metropolitan Area, which has a population of 44 million. The BBA s GDP reached USD 1.39 trillion in 2016, slightly higher than the national GDP of Australia in the same year. Current forecasts expect a threefold increase in the BBA s GDP by 2030 to about USD 4.6 trillion, which would likely make the BBA the number one bay area in the world in terms of GDP. In view of these factors, the HSBBAC was launched to help investors track market opportunities by providing exposure to a comprehensive BBA investment universe. Exhibit 1. Map of GuangdongMacao BBA Source: Constitutional and Mainland Affairs Bureau 5 Hang Seng Indexes Quarterly 2nd Quarter

13 Index Research Hang Seng Stock Connect Big Bay Area Composite Index Capturing the Growth Potential of GuangdongMacao Big Bay Area Index Characteristics Exhibit 2. BBA Constituent Company Weighting Distribution As at 31 May 2018 Industry Headquarter / Primary Centre of Operations Shenzhen Guangzhou Foshan Macao Zhuhai Dongguan Zhongshan Huizhou Zhaoqing Jiangmen Total Financials 21.7% (7) 7.7% (10) 0.8% 0.1% 30.3% (19) Properties & Construction 4.9% (16) 11.0% (23) 2.6% (8) 1.3% (2) 0.2% (2) 0.03% 20.0% (52) Consumer Goods 3.4% (15) 1.6% (7) 1.9% (10) 5.7% (4) 3.2% (3) 0.1% (2) 0.5% (2) 0.4% 16.9% (44) Information Technology 11.8% (18) 0.4% 0.6% (6) 0.04% 0.1% 0.6% 0.1% (2) 13.5% (30) Consumer Services 0.7% (6) 1.7% (7) 1.2% (6) 4.4% (6) 7.9% (25) Industrials Utilities Materials Conglomerates 3.9% (26) 0.6% (4) 0.2% (4) 0.2% (2) 0.3% (3) 0.2% (3) 0.1% 0.1% 0.1% 5.9% (45) 0.4% (3) 2.7% (4) 0.3% (4) 0.1% 3.4% (12) 0.4% (7) 0.4% (2) 0.3% (3) 0.1% 0.1% 1.3% (14) 0.1% 0.3% 0.05% 0.4% (3) Telecommunications 0.4% (5) 0.03% 0.4% (6) Energy Total 47.4% (99) 26.7% (64) 7.9% (43) 7.4% (11) 4.4% (6) 3.5% (6) 1.2% (8) 0.8% (9) 0.5% (2) 0.1% 0.1% 100.0% (250) Relationship between Industry and Headquarters/Primary Centre of Operations From a geographical perspective, 99 of the 250 constituent companies as at 31 May 2018 are based in Shenzhen, accounting for the largest weighting in the index (approximately 47%), followed by and Guangzhou, with aggregate weightings of 27% (64 companies) and 8% (43 companies) respectively. The largest industry group in terms of the number of constituents is Properties & Construction, with a total of 52 companies. The Properties & Construction industry comprises 20% of the total index weighting. As Energy sector companies in the BBA are generally smaller in size, there are currently no companies from this sector included in the index. The weighting distribution highlights the strengths and industry focus of each city and SAR within the BBA. Shenzhen, as an innovation and technology hub, has an Information Technology industry focus. is well established as an international financial centre, and therefore naturally has a substantial weighting in the Financials industry. The Consumer Goods sector accounts for a significant proportion of constituents from Guangzhou, Foshan and Zhuhai, as these three cities effectively function as an advanced production and innovation R&D centre. The Consumer Services sector is a focus for Macao as it is well known for tourism. Share Class Distribution Exhibit 3. Share class distribution As at 31 May 2018 With regard to the listing place, listed stocks and Mainlandlisted AShares account for 52% and 48% of the index weighting respectively. Red Chips (12), 3.9% P Chips (25), Among the listed shares, companies account for 26% of the index weighting, while Hshares, P Chips and Red Chips jointly comprise the other 26%. 14.4% H Shares (18), SZ (129), 26.0% 7.9% HK Ordinary (45), 25.5% SS (37), 22.3% () number of constituents SS: Shanghai SZ: Shenzhen Hang Seng Indexes Quarterly 2nd Quarter

14 Index Research Hang Seng Stock Connect Big Bay Area Composite Index Capturing the Growth Potential of GuangdongMacao Big Bay Area Size Distribution As at the end of May 2018 the 250 constituent companies had a total market capitalisation of RMB 16 trillion. Among the constituents, two companies had a market capitalisation of more than RMB 1,000 billion as at 31 May 2018 and 13% of constituents had market capitalisations exceeding RMB 100 billion. The market capitalisations of over 75% of constituent companies were within the range of RMB 5 billion and RMB 50 billion. Only five constituent companies had market capitalisations of less than RMB 5 billion. Exhibit 4. Size distribution (by number of constituent companies) No. of Companies <RMB 5 Bn RMB 510 Bn RMB 1025 Bn RMB 2550 Bn RMB Bn RMB Bn RMB Bn >RMB 1000 Bn As at 31 May 2018 Market Value Exhibit 5. Index Performance HSBBAC HSC50 (CNY) HSCAT100 HSI (CNY) Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Return (%) Ann. Vol (%) Indexes ^ Overall*^ ^ Overall*^ Return (%) HSBBAC HSCAT HSC50 CNY HSI CNY * Since 31 Dec 2014 ^ As at 31 May 2018 Hang Seng China A Top 100 Index serves as a benchmark to track the overall performance of the top 100 AShare companies listed on the Mainland. (2) The Hang Seng China 50 Index measures the overall performance of the 50 largest China companies (in terms of market capitalisation) listed on and / or Mainland stock exchanges. 7 Hang Seng Indexes Quarterly 2nd Quarter

15 Index Research Hang Seng Stock Connect Big Bay Area Composite Index Capturing the Growth Potential of GuangdongMacao Big Bay Area HSBBAC Outperformed Flagship Indexes Exhibit 5 compares the performance of the HSBBAC with that of the Hang Seng China A Top 100 Index ( HSCAT100 ), the Hang Seng China 50 Index ( HSC50 ) and the Hang Seng Index ( HSI ) from 31 December 2014 to 31 May The HSBBAC delivered a better performance than other major indexes in 2015 and Overall, the HSBBAC delivered a cumulative return of 49.0%, significantly outperforming the other major indexes in the period under analysis. The annualised volatility of the HSBBAC was comparable to that of the HSI and the HSC50, and was generally lower than that of the HSCAT100. Industry Distribution Comparison Exhibit 6 displays the industry distribution comparison between the HSBBAC, the HSCAT100, the HSC50 and the HSI as at 31 May Financials, Properties & Construction, Consumer Goods and Information Technology accounted for the majority of the HSBBAC weighting, at 30.3%, 20.0%, 16.9% and 13.5% respectively. The industry distribution of the HSBBAC was more diversified. For example, The weighting of Financials within the HSBBAC was around 18 percentage points lower than that of Financials in the HSI. Exhibit 6. Industry Distribution Financials 30.3% 46.3% 48.8% 54.1% Properties & Construction 7.2% 11.0% 11.2% 20.0% Consumer Goods 3.9% 11.1% 16.9% 24.6% Information Technology 3.4% 13.5% 11.2% 10.4% Consumer Services 2.3% 0.0% 3.8% 7.9% Industrials 2.9% 1.3% 1.5% 5.9% Utilities 3.4% 3.7% 1.2% 4.7% Materials 1.3% 2.3% 0.5% 0.0% Conglomerates 0.4% 0.0% 0.6% 3.7% Telecommunications 0.4% 0.7% 5.3% 5.4% Energy 0.0% 2.8% 7.5% 6.7% HSBBAC HSCAT100 HSC50 HSI As at 31 May % 10% 20% 30% 40% 50% 60% Hang Seng Indexes Quarterly 2nd Quarter

16 Index Research Hang Seng Stock Connect Big Bay Area Composite Index Capturing the Growth Potential of GuangdongMacao Big Bay Area Index Methodology Hang Seng Composite Index Constituents eligible for Southbound trading under the Stock Connect Scheme Mainlandlisted shares eligible for Northbound Trading under the Stock Connect Scheme Eligibility Requirement 1. Headquartered/Primary Centre of Operation in the following cities/special Administrative Regions:, Macao, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing 2. At least 50% of revenue derived from mainland China, and/or Macao in the latest complete fiscal year Select 250 constituent companies with the largest market capitalisation Freefloatadjusted market capitalisationweighted with a 10% cap on individual companies Constituent List (Top 5 by Headquarters/Primary Centre of Operation) A Code HK Code Name Wgt (%) A Code HK Code Name Wgt (%) A Code HK Code Name Wgt (%) Shenzhen Guangzhou (99) (64) (43) Ping An Tencent CM Bank China Vanke CITIC Sec Others (94) HKEx CK Asset SHK Ppt Hang Seng Bank BOC Others (59) PRE GF Sec Evergrande China South Air GAC Group Others (38) Foshan Macao Zhuhai (11) (6) (6) 1513 Midea Group Hai Tian Country Garden Keda Hisense Kelon Others (6) Galaxy Ent Sands China Ltd Wynn Macau SJM Holdings Melco Int'l Dev Others GREE Livzon Pharma GREE Real Estate Ninestar Hokai Medical Others Dongguan Zhongshan Huizhou Zhaoqing 636 Jiangmen 2600 (8) (9) (2) LXJM GDHEC SYTECH Zhongshengyaoye JANUS Others (3) Jonjee HiTech Vatti DYDJ ZPUG TWH Others (4) TCL EVE Fenghua Ly Itech ( ) = number of companies Data as at 31 May Hang Seng Indexes Quarterly 2nd Quarter

17 Index Products As at 30 June 2018 Exchangetraded Fund (ETF) ETF Name Hang Seng Index Tracker Fund of Hang Seng Index ETF Lyxor ETF HSI Reliance ETF Hang BeEs ComStage HSI UCITS China AMC HSI ETF ChinaAMC SHHK Stock Connect Hang Seng Index ETF China Southern HSI ETF Fuh Hwa Hang Seng ETF ishares Core Hang Seng Index ETF Hang Seng China Enterprises Index Hang Seng China Enterprises Index ETF Lyxor ETF China Enterprise HSCEI Samsung KODEX China H ETF ComStage HSCEI UCITS E Fund HSCEI ETF Tiger China HShare ETF KB KBSTAR China Hshare H ETF Fubon Hang Seng HShare Index ETF China Southern HSCEI ETF Hang Seng Enterprises Futures Index Samsung KODEX China H Inverse Future ETF KBSTAR China HShare Futures Inverse (H) ETF Hang Seng HK 35 Amundi Hang Seng HK 35 Index ETF Hang Seng China (listed) 25 Index Mirae Asset MAPS TIGER China ETF Hang Seng High Dividend Yield Index Mirae Asset Horizons Hang Seng High Dividend Yield ETF Horizons China High Dividend Yield Index ETF Hang Seng China A Industry Top Index Hang Seng China A Industry Top Index ETF Hang Seng Stock Connect SmallCap Index ChinaAMC Hang Seng Stock Connect SmallCap Index ETF Leveraged and Inverse Products (L&I) ETF Name Hang Seng Index ChinaAMC Direxion HSI Daily (1x) Inverse Product ChinaAMC Direxion HSI Daily (2x) Leveraged Product CSOP HSI Daily (1x) Inverse Product CSOP HSI Daily (2x) Leveraged Product Mirae Asset Horizons HSI Daily (1x) Inverse Product Mirae Asset Horizons HSI Daily (2x) Leveraged Product Samsung HSI Daily (1x) Inverse Product Samsung HSI Daily (2x) Leveraged Product E Fund Yuanta HSI Daily (1x) Inverse Product E Fund Yuanta Hang Seng Index Daily (2x) Leveraged Product Hang Seng China Enterprises Index ARIRANG SynthChina H Leverage ETF Samsung KODEX China H Leverage ETF ChinaAMC Direxion HSCEI Daily (1x) Inverse Product ChinaAMC Direxion HSCEI Daily (2x) Leveraged Product CSOP HSCEI Daily (1x) Inverse Product CSOP HSCEI Daily (2x) Leveraged Product Mirae Asset Horizons HSCEI Daily (1x) Inverse Product Mirae Asset Horizons HSCEI Daily (2x) Leveraged Product Samsung HSCEI Daily (1x) Inverse Product Samsung HSCEI Daily (2x) Leveraged Product HSI Short Index Fuh Hwa Daily Hang Seng Inversed ETF HSI Leveraged Index Fuh Hwa Daily Hang Seng Leveraged 2X ETF HSCEI Short Index China Bear 1x HSCEI ETF Fubon Hang Seng HShare Inverse Index ETF HSCEI Leveraged Index China Bull 2x HSCEI ETF Fubon Hang Seng HShare Leveraged Index ETF Exchangetraded Note (ETN) ETN Name Hang Seng Index Psagot HSI ETN Harel Sal HSI ETN Hang Seng China Enterprises Index Index HSCEI ETN KSM HSCEI ETN HSI Leveraged Index Next Notes HSI Leveraged ETN HSI Short Index Next Notes HSI Short ETN HSCEI Short Index TRUE HSCEI Short Index ETN (H) Classification Fund Fund Name Hang Seng Index Huitianfu Hang Seng Index Fund Hang Seng China Enterprises Index Yinhua Hang Seng China Enterprises Index Fund Listed Openended Fund (LOF) Fund Name Hang Seng Index Da Cheng Hang Seng Index Fund Hang Seng China Enterprises Index Harvest Hang Seng China Enterprises Index Securities Investment Fund Hang Seng Composite MidCap & SmallCap Index Da Cheng Hang Seng MidCap & SmallCap Index Fund Hang Seng Composite MidCap Index GF Hang Seng MidCap Index Fund Hang Seng Composite SmallCap Index Listing Places France, Italy, Germany, Singapore, Switzerland India Germany, UK, Switerzland Shenzhen Shanghai Shanghai Taiwan France, Italy, Germany, Spain, Singapore, UK, Switzerland South Korea Germany, UK, Switerzland Shanghai South Korea South Korea Taiwan Shenzhen South Korea South Korea South Korea Canada Listing Places South Korea South Korea Taiwan Taiwan Japan Taiwan Japan Taiwan Listing Places Israel Israel Israel Israel Japan Japan South Korea Listing Places Shenzhen Shenzhen Listing Places Shenzhen Shenzhen Shenzhen Shanghai ETF Manager State Street Global Advisors Asia Limited Hang Seng Investment Management Limited Lyxor International Asset Management Goldman Sachs Asset Management (India) Private Limited Commerz Derivatives Fund Solutions S.A. China Asset Management Co., Ltd. China Asset Management Co., Ltd. China Southern Asset Management Co Ltd Fuh Hwa Securities Investment Trust Company Limited Blackrock Asset Management North Asia Limited Hang Seng Investment Management Limited Lyxor International Asset Management Samsung Investment Trust Management Co. Limited Commerz Derivatives Fund Solutions S.A. E Fund Management Co., Ltd. Mirae Asset Global Investments Company Limited KB Asset Management Company Limited Fubon Asset Management Company Limited China Southern Asset Management Co Ltd South Korea Samsung Asset Management Co. Ltd KB Asset Management Company Limited Amundi Limited Mirae Asset Global Investments Mirae Asset Global Investments (HK) Ltd Horizons ETFs Management (Canada) Inc. Hang Seng Investment Management Limited China Asset Management () Limited ETF Manager China Asset Management () Limited China Asset Management () Limited CSOP Asset Management Co., Ltd CSOP Asset Management Co., Ltd Mirae Asset Global Investments (HK) Ltd Mirae Asset Global Investments (HK) Ltd Samsung Asset Management Co. Ltd Samsung Asset Management Co. Ltd E Fund Management () Co., Ltd. E Fund Management () Co., Ltd. Hanwha Asset Management Co. Ltd Samsung Asset Management Co. Ltd China Asset Management () Limited China Asset Management () Limited CSOP Asset Management Co., Ltd CSOP Asset Management Co., Ltd Mirae Asset Global Investments (HK) Ltd Mirae Asset Global Investments (HK) Ltd Samsung Asset Management Co. Ltd Samsung Asset Management Co. Ltd Fuh Hwa Securities Investment Trust Company Limited Fuh Hwa Securities Investment Trust Company Limited Simplex Asset Management Co., Ltd. Fubon Asset Management Company Limited Simplex Asset Management Co., Ltd. Fubon Asset Management Company Limited ETN Manager Psagot Investment House HarelSal Ltd Tachlit Index Sal Ltd KSM Sal Indices Certificates Ltd. Nomura Asset Management Co., Ltd. Nomura Asset Management Co., Ltd. Korea Investment & Securities Co., Ltd Fund Manager China Universal Asset Management Co., Ltd. Yinhua Fund Management Co. Ltd. Fund Manager Da Cheng Fund Management Company Limited Harvest Fund Management Co., Ltd. Da Cheng Fund Management Company Limited GF Fund Management Co., Ltd. (Sorted by Fund Inception Date) UCITS Fund P P P P Hang Seng Indexes Quarterly 2nd Quarter

18 Index Products As at 30 June 2018 GF Hang Seng MidCap Index Fund Hang Seng Composite SmallCap Index E Fund Hang Seng Composite SmallCap Index Fund Hang Seng China (listed) 25 Index Fortune SG Stock Through Hang Seng China 25 Index Fund Hang Seng China Enterprises Smart Index China Southern Hang Seng China Enterprise Prudent Index Fund Hang Seng HK 35 Hwabao Hang Seng HK 35 Index Fund Mandatory Provident Fund (MPF) MPF Name Hang Seng Index BOCIPrudential Tracking Fund BCT (Pro) Hang Seng Index Tracking Fund BCOM HSI Tracking (CF) Fund BEA Tracker Fund Hang Seng Index Tracking Fund Invesco Hang Seng Index Tracking Fund Principal Hang Seng Index Tracking Fund Fidelity Tracker Fund Manulife MPF Hang Seng Index Tracking Fund Hang Seng China Enterprises Index Hang Seng China Enterprises Index Fund BEA China Tracker Fund Index Fund Fund Name Hang Seng Index Voya Hang Seng Index Portfolio Hang Seng Index Fund Hang Seng Index Fund Hang Seng Index Leveraged 150 Fund Hang Seng China Enterprises Index MiraeAsset Indexro China H Leverage Master Fund MiraeAsset MAPS China H Index Equity Trust I Hang Seng China Enterprises Index Leveraged 150 Fund KB China HSCEI (H) Index Securities Fund Hang Seng China A Industry Top Index HSBC Jintrust Hang Seng China A Industry Top Index Fund Hang Seng Composite MidCap Index Hang Seng HK MidCap Index Fund Hang Seng China 50 Index Hang Seng China 50 Index Fund Hang Seng Corporate Sustainability Index Hang Seng Corporate Sustainability Index Fund Hang Seng SCHK High Dividend Low Volatility Index Hang Seng Qianhai SCHK High Dividend Low Volatility Index Fund Shanghai Shenzhen Shenzhen Shenzhen Shenzhen Offering Places USA Japan South Korea South Korea South Korea PRC PRC GF Fund Management Co., Ltd. E Fund Management Company Limited Fortune SG Asset Management Co., Ltd. China Southern Asset Management Co., Ltd. Hwabao WP Fund Management Co., Ltd. Sponsor/Trustee BOCIPrudential Trustee Limited Bank Consortium Trust Company Limited Bank of Communications Trustee Limited Bank of East Asia (Trustees) Limited HSBC Provident Fund Trustee () Limited Invesco Limited Principal Trust Company (Asia) Limited FIL Investment Management () Limited Manulife Provident Funds Trust Company Limited HSBC Provident Fund Trustee () Limited Bank of East Asia (Trustees) Limited Fund Manager ING Investment Management Co. and ING Investments, LLC Sumitomo Mitsui Asset Management Company Limited Hang Seng Investment Management Limited Hang Seng Investment Management Limited Mirae Asset Global Investments Co., Ltd. Mirae Asset Global Investments Co., Ltd. Hang Seng Investment Management Limited KB Asset Management Co., Ltd HSBC JinTrust Fund Management Company Limited Hang Seng Investment Management Limited Hang Seng Investment Management Limited Hang Seng Investment Management Limited Hang Seng Qianhai Fund Management Limited (Sorted by Fund Inception Date) Futures & Options Indexes Futures Hang Seng Index Hang Seng China Enterprises Index Daily Average Volume* Apr May Jun 261, , , , , , , , , ,673 Open Interest 2018 Apr May Jun 135, , , , , , , , , ,904 Dividend Point Indexes # Hang Seng Index ,126 11,976 12,025 9,052 4,621 Dividend Point Indexes # Hang Seng China Enterprises Index ,386 93,790 95, ,890 72, ,112 HSI Volatility Index^ Options Hang Seng Index Hang Seng China Enterprises Index 51,195 79,881 42,092 75,535 50, ,898 51,442 68,682 39,025 79, ,377 2,920, ,716 3,129, ,610 2,792, ,906 1,983, ,082 2,078,923 Source: Exchanges and Clearing Ltd. * Include both Standard and Mini futures/options. 1 Standard = 5 Mini # Dividend Point Indexes futures was launched on 1 Nov 2010 ^ VHSI Futures was launched on 20 Feb 2012 Warrants & Callable Bull/Bear Contracts ("CBBCs") Indexes Warrants Hang Seng Index linked Hang Seng China Enterprises Index linked CBBCs Hang Seng Index linked Hang Seng China Enterprises Index linked Source: Exchanges and Clearing Ltd. Daily Average Turnover (HKD 'Mn) Apr May Jun 2, , , , , , , , , , Hang Seng Indexes Quarterly 2nd Quarter

19 Index Performance As at 29 June Year Change (%) Annualised Annualised Dividend Return (%) Volatility Yield PE Ratio Level 3Month YTD 1Year 3Year 5Year Year 5Year (%) (%) (Times) HONG KONGLISTED Hang Seng Index Subindexes Hang Seng Finance Subindex Hang Seng Utilities Subindex Hang Seng Properties Subindex Hang Seng Commerce & Industry Subindex Hang Seng Composite Index Hang Seng Composite Industry Indexes Energy Materials Industrials Consumer Goods Consumer Services Telecommunications Utilities Financials Properties & Construction Information Technology Conglomerates Hang Seng Composite Size Indexes Hang Seng Composite LargeCap Index Hang Seng Composite LargeCap & MidCap Index^ Hang Seng Composite MidCap Index Hang Seng Composite MidCap & SmallCap Index^ Hang Seng Composite SmallCap Index Hang Seng Foreign Companies Composite Index Hang Seng Global Composite Index Hang Seng Corporate Sustainability Benchmark Index Hang Seng China Enterprises Index Hang Seng ChinaAffiliated Corporations Index Hang Seng China HFinancials Index Hang Seng China (listed) 100 Hang Seng China (listed) 25 Hang Seng H40 Reference Index Hang Seng HK 35 Hang Seng REIT Index Hang Seng Corporate Sustainability Index Hang Seng High Dividend Yield Index Hang Seng Low Volatility Index Hang Seng High Beta Index Hang Seng Sector Index Series Hang Seng IT Hardware Index Hang Seng Mainland Banks Index 28, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (3.78) (4.63) (3.04) (3.08) (2.95) (4.32) 7.54 (10.86) (4.02) (2.13) (4.87) (2.11) (0.75) (5.82) (5.82) (4.77) (7.51) (3.61) (4.31) (7.70) (6.98) (4.58) (15.41) (4.59) (5.27) (7.71) (0.73) (10.73) (5.15) (6.20) (8.70) (3.42) (1.62) (4.79) (9.23) (1.00) (11.85) (14.89) (10.06) (3.22) (3.59) (0.92) (3.26) (3.03) (3.90) (10.69) (0.53) (1.86) (2.75) (10.40) 2.63 (5.91) (3.21) (5.20) (10.41) (2.96) (4.17) (10.02) (7.41) 1.50 (13.49) (4.12) (5.26) (5.43) (1.12) (9.48) (2.97) (3.79) (6.60) (4.78) (2.20) (5.44) (3.22) 0.24 (10.64) (23.90) (1.36) (1.86) (14.17) (8.24) (0.72) (15.36) 8.46 Hang Seng Mainland Healthcare Index 6, (6.87) ^ The Hang Seng Composite LargeCap & MidCap Index aims at reflecting the overall performance of LargeCap & MidCap sectors and the Hang Seng Composite MidCap & SmallCap Index aims at reflecting the overall performance of MidCap & SmallCap sectors (3.00) (1.51) (27.22) (3.70) (2.83) (22.77) (4.85) (7.48) (15.79) (14.70) (10.26) (17.57) (15.75) (4.49) (19.67) (10.24) (9.41) (9.11) (11.44) (6.46) (0.96) (0.88) (2.11) (3.06) 2.89 (0.89) (7.59) (10.29) 3.62 (5.98) (7.44) (3.06) (1.84) (15.44) 0.44 (0.46) (4.26) (5.19) (8.23) (1.31) 0.75 (2.75) (11.45) (5.02) (1.29) (0.78) (2.75) (2.98) (1.56) 0.05 (11.71) (7.16) (9.81) (6.32) (2.09) (5.29) (7.52) (31.33) (18.68) (5.74) (11.09) (23.92) (5.12) (8.14) (10.01) (2.57) (8.24) (7.50) (4.30) (5.05) (7.40) (29.05) (7.62) (5.76) (19.39) (6.85) (14.89) (10.61) (11.89) (19.39) (4.98) 0.69 (3.58) (4.75) (6.88) (15.09) (7.47) (17.53) (1.01) (0.51) (10.05) (1.25) (0.95) (8.25) (1.64) (2.56) (5.57) (5.16) (3.54) (6.24) (5.55) (1.52) (7.04) (3.54) (3.24) (1.89) (2.40) Hang Seng Indexes Quarterly 2nd Quarter

20 Index Performance As at 29 June 2018 Hang Seng Mainland Oil & Gas Index Hang Seng Mainland Properties Index Hang Seng Software & Services Index Hang Seng Consumer Goods & Services Index Hang Seng Healthcare Index Hang Seng Internet & Information Technology Index Hang Seng Stock Connect Index Hang Seng Stock Connect MidCap & SmallCap Index Hang Seng Stock Connect SmallCap Index Hang Seng SCHK Mainland China Banks Index Hang Seng SCHK High Dividend Low Volatility Index Hang Seng SCHK HK Companies Index Hang Seng SCHK Mainland China Companies Index Hang Seng SCHK exah Companies Index Hang Seng SCHK New Economy Index Hang Seng SCHK Quality Growth Low Volatility Index HSI Volatility Index Hang Seng Risk Adjusted Index Series Hang Seng Risk Adjusted Index HSI 20% Hang Seng Risk Adjusted Index HSCEI 25% Hang Seng Short & Leveraged Index Series Short Indexes HSI Short Index HSCEI Short Index Hang Seng HFin Short Index HSI 2x Short Index HSCEI 2x Short Index Hang Seng HFin 2x Short Index Leveraged Indexes HSI Leveraged Index HSCEI Leveraged Index Hang Seng HFin Leveraged Index Hang Seng Equal Weighted Index Hang Seng China Enterprises Equal Weighted Index Hang Seng Futures Index Series Hang Seng Futures Index Hang Seng Futures RMB FX Index Hang Seng China Enterprises Futures Index Hang Seng China Enterprises Futures RMB FX Index HSCEI Futures Short Index HSCEI Futures 2x Leveraged Index Currency Hedged Indexes HSI RMB Hedged Index HSI EUR Hedged Index HSI GBP Hedged Index HSI JPY Hedged Index Change (%) Annualised Return (%) Level 3Month YTD 1Year 3Year 5Year Year 5Year 1, , , , , , , , , , , , , , , , (9.71) (5.25) (4.37) 2.05 (5.71) (4.33) (7.15) (3.54) (9.41) (5.99) (3.79) (5.35) (2.63) (4.80) (7.02) (21.77) (1.57) 1.24 (6.51) (10.93) (3.89) (8.35) 2.82 (1.40) (5.04) (5.20) (3.18) (2.93) (6.45) (4.50) (7.00) (5.99) (16.47) (12.32) (2.29) (6.62) (24.27) (13.56) 6.28 (13.15) (5.80) (1.49) (11.06) 6.20 (0.63) (5.45) (9.78) (0.27) 0.60 (1.11) (1.07) (1.33) (0.70) (0.91) (8.65) (25.39) (19.05) (3.21) 1.79 (7.36) (4.93) (8.96) (13.79) (10.51) (4.81) (7.93) (2.50) (0.71) (2.50) 5.42 (2.39) (2.04) (5.82) (4.29) (0.77) (2.26) (5.41) , , (2.70) (6.32) (2.54) (4.38) (7.60) (0.67) (5.30) (16.78) 5.34 (2.60) , , (0.09) (2.38) (0.22) 8.31 (16.07) (13.12) (9.68) (31.82) (27.97) (22.61) (26.05) (8.76) (6.55) (51.06) (99.29) (99.26) (48.03) (44.76) (51.51) (77.06) (76.52) (82.52) (30.09) (24.52) (25.10) (51.97) (44.54) (45.62) (7.67) (6.87) (5.02) (18.08) (18.18) (14.81) (0.52) (5.55) (0.59) (9.57) (3.01) (2.23) (21.20) (80.78) (80.53) (12.27) (11.19) (13.48) (25.51) (25.16) (29.45) 23, , , , , (8.31) (15.87) (21.34) (3.14) (6.62) (8.49) (13.33) (20.82) (2.79) (6.62) (0.30) (38.04) (42.70) 0.47 (20.42) (3.17) (10.84) (14.87) (3.94) (4.74) (17.79) (39.97) (33.87) (10.59) (20.15) 2.82 (14.75) (16.94) 0.16 (7.33) , , , , , , (2.75) (7.94) (6.87) (11.86) (5.93) (2.40) (3.70) (4.65) (5.96) (8.30) (13.48) (14.45) (29.17) (22.15) (2.45) (0.10) (5.69) (5.16) (5.51) (5.84) (11.35) (17.99) (22.80) (37.85) (2.85) (4.71) 4.20 (5.07) (6.67) , , , , (3.38) (4.12) (3.92) (4.09) (2.18) (4.29) (3.93) (4.02) (0.94) (0.16) (0.76) (14.08) (7.38) (7.68) (7.52) Year Annualised Volatility (%) Dividend Yield (%) PE Ratio (Times) Hang Seng Indexes Quarterly 2nd Quarter

21 Index Performance As at 29 June 2018 HSI JPY Hedged Index HSCEI RMB Hedged Index HSCEI EUR Hedged Index HSCEI GBP Hedged Index HSCEI JPY Hedged Index CROSS MARKETLISTED Hang Seng China 50 Index Hang Seng China AH Premium Index Hang Seng (Mainland and HK) Corporate Sustainability Index Hang Seng China AH (A+H) Index Hang Seng China AH (A) Index Hang Seng China AH (H) Index Hang Seng China AH Smart Index Hang Seng CSI Shanghai AH Smart Index Hang Seng China Enterprises Smart Index Hang Seng Shenzhen Index Series Hang Seng Shenzhen Index Hang Seng Shenzhen Financials Index Hang Seng Shenzhen Consumption Index Hang Seng Shenzhen Real Estate Index Hang Seng Shenzhen Information Technology Index Hang Seng Shenzhen Infrastructure & Transportation Index Hang Seng Stock Connect Big Bay Area Composite Index MAINLANDLISTED Hang Seng China A Industry Top Index Hang Seng China A Top 100 Index Hang Seng (China A) Corporate Sustainability Benchmark Index Hang Seng (China A) Corporate Sustainability Index BOND INDEXES Hang Seng ibond Index Series Hang Seng ibond Composite Total Return Index Hang Seng ibond 1906 Total Return Index Hang Seng Markit iboxx Offshore RMB Bond Index family Hang Seng Markit iboxx Offshore RMB Bond Overall Index Hang Seng Markit iboxx Offshore RMB Corporates Bond Index Hang Seng Markit iboxx Offshore RMB China Government Bond Index Hang Seng Markit iboxx Offshore RMB NonSovereigns Bond Index Hang Seng Markit iboxx Offshore RMB Large Cap Bond Index Hang Seng Markit iboxx Offshore RMB High Yield Bond Index Hang Seng Markit iboxx Offshore RMB Investment Grade Bond Index OTHER INDEXES Dividend Point Index Series HSI Dividend Point Index HSCEI Dividend Point Index Change (%) Annualised Return (%) Level 3Month YTD 1Year 3Year 5Year Year 5Year 1, , (4.09) (7.40) (8.10) (7.93) (8.04) (4.02) (4.61) (6.72) (6.44) (6.36) (7.77) (18.29) (17.04) (17.29) (0.76) 1.43 (4.05) (3.73) (3.53) (7.52) (25.59) (19.95) (20.13) (19.67) 2.24 (2.66) (6.51) (6.04) (6.13) , , , , , , , , (9.80) (6.93) (9.29) (13.53) (11.80) (10.28) (10.50) (4.49) (7.94) (8.71) (9.37) (10.11) (12.99) (15.63) (8.50) (9.17) (6.32) (5.70) 8.26 (7.26) (3.13) (0.15) (11.57) (4.57) (17.56) (14.50) (12.36) (9.42) (11.12) (3.74) (12.45) (4.45) (8.22) (7.69) (1.34) (0.71) 7.07 (2.04) (9.21) 8.03 (5.21) (12.22) (3.71) (17.03) (13.47) (16.16) (0.05) (4.02) (1.55) (6.23) (5.09) (4.30) (3.25) (3.85) , , , , , , , (7.55) (4.42) (8.74) (7.73) (10.53) (5.64) (6.18) (11.66) (11.27) (10.55) (11.31) (13.43) (11.12) (8.89) (2.85) (3.65) (0.40) (15.20) (2.16) (31.63) (0.18) (3.41) 1.45 (3.58) (10.88) (1.62) (2.92) (0.73) (11.90) , , , , (8.25) (8.60) (14.26) (13.62) (10.22) (11.95) (17.73) (18.70) 4.21 (0.53) (3.89) (4.47) 1.30 (7.65) (1.89) (7.10) (2.13) (4.75) (4.89) (5.43) 6.86 (1.08) 5.55 (1.63) 0.43 (2.62) (0.63) (2.43) (0.34) Year Annualised Volatility (%) Dividend Yield (%) PE Ratio (Times) Hang Seng Indexes Quarterly 2nd Quarter

22 Index Rankings Hang Seng Family of Indexes As at 29 June 2018 Hang Seng Composite Index Size Indexes 3Month Index Performance (%) 1Year Index Performance (%) LargeCap LargeCap & MidCap Hang Seng Composite Index SmallCap MidCap & SmallCap MidCap Industry Indexes 3Month Index Performance (%) 1Year Index Performance (%) Energy Utilities Telecommunications Consumer Goods Industrials Hang Seng Composite Index Information Technology Consumer Services Properties & Construction Financials Conglomerates Materials Hang Seng Indexes Quarterly 2nd Quarter

23 Index Rankings Hang Seng Family of Indexes As at 29 June 2018 Market Indexes 3Month Index Performance (%) 1Year Index Performance (%) Hang Seng Index Hang Seng Shenzhen Index Hang Seng China Enterprises Index Hang Seng China A Industry Top Index Hang Seng China A Top 100 Index Hang Seng China 50 Index Thematic Indexes (By Share Class) Hang Seng ChinaAffiliated Corporations Index Hang Seng REIT Index 3Month Index Performance (%) 1Year Index Performance (%) Hang Seng HK Hang Seng China (listed) Hang Seng China (listed) Hang Seng China Enterprises Index Hang Seng H40 Reference Index Hang Seng China HFinancials Index Thematic Indexes (By Strategy) 3Month Index Performance (%) 1Year Index Performance (%) Hang Seng Low Volatility Index Hang Seng Corporate Sustainability Index Hang Seng High Dividend Yield Index Hang Seng High Beta Index Remark: Backdated index data is included. Hang Seng Indexes Quarterly 2nd Quarter