China to launch securities index reflecting HK, Taiwan markets

Last Updated: Sunday, January 3, 2010 - 18:23

Beijing: China will launch a new securities index on January 18 to reflect the performance of equity markets on the Chinese mainland, Hong Kong and Taiwan, the state media reported on Sunday.

The China Securities Index Co. (CSI) will launch the CSI Cross-Straits 500 Index to reflect the performance of 500 stocks traded on the Chinese mainland, Hong Kong and Taiwan which has a combined market value of USD 4.7 trillion.

A total of 500 stocks are chosen as samples of the CSI Cross-Straits 500 Index, including the 300 stocks covered by the Hushen 300 Index, 100 stocks of CSI Hong Kong 100 Index and 100 stocks selected on the Taiwan Stock Exchange, CSI said.

The sample stocks would be changed every six months, Xinhua news agency reported.

Latest statistics showed that the 500 stocks under the CSI Cross-Straits 500 Index, with a combined market value of 32 trillion yuan (USD 4.7 trillion), accounted for about 75 per cent of total market value on the bourses on the Chinese mainland, Hong Kong and Taiwan, it said.

The index is set at 1,000 on the base date of December 31 of 2004. As of the end of 2009, the index climbed 46.2 per cent from the base date to 1,462 points, the report said.

Hong Kong, a former British colony, is now a special administrative region of China. Though Taiwan continues to defy Chinese rule, Beijing views it as a rebel province that should be reunified with the mainland, even by force.

PTI



First Published: Sunday, January 3, 2010 - 18:23

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