Hang Seng Indexes Company has launched the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index, which aims to reflect the overall performance of high-yield companies that are listed in Hong Kong or mainland China and operating in mainland China, Hong Kong or Macau.
In light of the low-interest-rate environment and uneven economic recovery, many investors are exploring pivot investment strategies, which have driven growing interest in high-yield products.
To help investors to better navigate the dynamic economic environment, the new index is composed of sizable companies that have demonstrated relatively lower price volatility and a persistent dividend payment record for the latest three fiscal years, with the aim of providing a benchmark for investors who are searching for yield enhancement to build an income-oriented investment portfolio. As of July 30 2021, the simulated dividend yield of the index was 8.4%.
The index is calculated and disseminated in real-time at two-second intervals.
Daniel Wong, Hang Seng Indexes Company’s director and chief index officer, says: “In the face of the recent market volatility, the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index is designed to offer onshore and offshore investors a diversified investment strategy for reaching yield targets by gaining exposure to a wide range of listed companies that have relatively lower price volatility.”