BOCI as the first Chinese investment bank to launch the “Greater Bay Area Leaders Index”

On 1 August, 2019, BOC International Holdings Limited (“BOCI”) announces the launch of the “BOCI Greater Bay Area Leaders Index” (referred to as “GBA Leaders Index”, Bloomberg Ticker: BCGBLP, Thomson Reuters RIC Code: .BCGBLP), the first index under the Guangdong-Hong Kong-Macao Greater Bay Area Equity Index Family (“GBA Index Family”). This index is compiled proprietarily by BOCI and is the first Guangdong-Hong Kong-Macao Greater Bay Area (GBA) focused equity index launched by a Chinese investment bank and disseminated through both Bloomberg and Thomson Reuters. The GBA Index Family aims to capture the investment opportunities and promote the coordinated financial development of the GBA. It provides domestic and global investors with comprehensive benchmarks that reflect the investment value of the GBA, and to further the acceleration of the internationalization of the Chinese financial market.

Li Tong, CEO of BOCI said, “On the coming 70th anniversary of the founding of the People's Republic of China, BOCI is honored to launch the “BOCI Greater Bay Area Leaders Index”. This new member of the BOCI Index Series demonstrates BOCI’s outstanding index compilation and research capabilities. As a Hong Kong based Chinese investment bank, BOCI is committed to the financial integration of the GBA, and to assist in the opening up and the connectivity enhancement of the Chinese capital market.”

Earlier this year, Chinese government promulgated the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area”, which signified a new milestone in the development of the GBA. On the backdrop of the accelerated development of the GBA, the Chinese capital market carries an important mission and faces a new impetus of growth.

The GBA Leaders Index covers listed GBA companies across a broad range of share classes including Hong Kong listed shares, Shanghai and Shenzhen listed A-shares as well as US listed Chinese ADRs, to provide investors a full exposure of the investment opportunity set in the GBA space. The index is constructed based on the investment themes highlighted on the “Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area”, namely, the “Advanced Manufacturing”, the “Strategic Emerging Industries”, the “Modern Service Industries”, and the “Modern Transport System and Construction”. Top leading companies from each theme are combined to form the constituents of the index. This index can be used by both domestic and global investors. Carefully chosen investment universe and free float factors are adopted to better reflect the investment opportunity set for the investors.

The GBA Leaders Index consists of 10 leading companies from each theme, a total of 40 companies. As each company can have more than one share classes, such as A-share and H-share, the total number of index constituents may be more than 40. Each theme carries equal index weighting and is reset at every regular index review. Index constituents within each individual theme are weighted by the free-float adjusted market capitalization. Each company’s index weighting is capped at 10% of the index.

In recent years, with the in-depth understanding of both the domestic and overseas capital market, BOCI takes full advantages of being a comprehensive international financial platform to innovate and develop new business. BOCI has launched a series of indices with great benchmarking values to global investors. In March 2019, BOCI launched three indexes on Bloomberg and Thomson Reuters, namely the BOCI China International Index (Bloomberg Ticker: BCICIP, Thomson Reuters RIC Code: .BCICIP), the BOCI Hong Kong Index (Bloomberg Ticker: BCIHKP, Thomson Reuters RIC Code: .BCIHKP) and the BOCI Hong Kong Global Exposure Index (Bloomberg Ticker: BCIGEP, Thomson Reuters RIC Code: .BCIGEP). The launch of the GBA Leaders Index fully demonstrates BOCI’s aspiration and innovation determination in the index business.