[13 August 2018] China First Capital Group Limited (“CFCG” or the “Company”, Stock Code: 1269.HK) is pleased to announce that the Company has been selected as a constituent of Hang Seng SCHK New Economy Index (“HSSCNE”) by Hang Seng Indexes Company Limited (“HSIL”) with effect on 10 September 2018.
Launched on 8 January 2018 by HSIL, HSSCNE aims to reflect the performance of companies available for southbound trading under the Stock Connect scheme that operate in ”New Economy” industries. HSI will review the sector requirements annually to keep the index in line with the evolving ”New Economy” concept. The HSSCNE is HSIL’s response to the growing demands for a comprehensive and dynamic index that tracks the performance of companies in the Hong Kong market that operate in the ”New Economy”’ sector. This new index is also characteristic of the open-mindedness of the Hong Kong market, which always works to enhance its competitiveness and eliminate shortcomings.
The extent of the new index covers 29 subsectors in industries of automobiles, telecommunications, information technology, new energy materials, environmental engineering, biotechnology, pharmaceuticals, entertainment, publishing, broadcasting, and internet industrials, consumer goods and consumer services.
The number of constituent securities varies and there is no limit to the number of constituents. All eligible securities are ranked in descending order by their 6-month daily average full market value. The top 50% in terms of the number of eligible securities will be selected as constituents. The cap on individual constituent weightings is 10%. As of 5 January, the number of HSSCNE constituents was 60, with Tencent (10.81%), China Mobile (9.51%) and Geely Auto (6.8%) ranked as the top three components on the index.
The selection of CFCG is clear evidence that the market shows confidence in the Company's business operations, finances as well as development, and strongly believes in the Company’s future. This recognition not only heightens the Company's profile and reputation as a major market player, but will also serve to expand its investor base.
The Company was selected as a constituent of the MSCI China Small Cap Index Series in June 2016. Since then, the Company has capitalised on its rising reputation and position in international markets to move forward with its two-pronged – “Educational Operations plus Financial Services” strategy. The Company was selected as a constituent of the FTSE Global Equity Index Series Asia Pacific ex Japan Regional Index in March 2017, and thereafter the Hang Seng Composite Index Series and Hang Seng Stock Connect Hong Kong Index in March 2018. In June 2018, CFCG was selected as a constituent of MSCI Global Standard Indexes and MSCI China All Shares Index.
The report to the 19th CPC Congress stated that priority will be given to the furtherance of China’s education sector. Leveraging its vast experience in educational operations, the Company welcomes the government’s new policy whole-heartedly, given the current background of markedly increased disposable income across mainland China, which has brought about a great number of investment opportunities for the domestic education industry. According to a report by Frost & Sullivan, total revenues of China’s education industry increased from RMB786.5 billion in 2013 to RMB1,149.6 billion in 2017, and is expected to further increase to RMB1,794.3 billion in 2022, or by a compound annual growth rate of 9.3% from 2017 to 2022. By securing significant investments from leading players in the market, the Company has been able to consolidate its own advantages from various financial service licenses, and achieve its goals of driving growth and generating hefty returns for shareholders.
The Company will be or will continue to be a constituent of the following indexes as from 10 September 2018:
1. MSCI Global Standard Indexes;
2. MSCI China All Shares Index;
3. FTSE Global Equity Index Series Asia Pacific ex Japan Regional Index;
4. Hang Seng Stock Connect Hong Kong Index;
5. Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index;
6. Hang Seng Stock Connect Hong Kong SmallCap Index;
7. Hang Seng SCHK Mainland China Companies Index;
8. Hang Seng SCHK ex-AH Companies Index;
9. Hang Seng SCHK New Economy Index;
10. Hang Seng Consumer Goods & Services Index; and
11. Hang Seng Composite Index and its subdivisions of:
– Hang Seng Composite MidCap Index;
– Hang Seng Composite LargeCap & MidCap Index;
– Hang Seng Composite MidCap & SmallCap Index; and
– Hang Seng Composite Industry Index – Consumer Goods