Dow Jones Indexes Launches Islamic Market Index for Hong Kong Listed Chinese Stocks
Dow Jones Indexes has launched the Islamic Market (DJIM) China Offshore Hong Kong Index. This represents the performance of companies that have been screened for compliance with Islamic principles and whose primary operations are in mainland China but trade on the Hong Kong stock exchange. Stocks included in the index are H-Shares and Red Chips. The index is designed to serve as underlying for investment products such as mutual funds, exchange-traded funds (ETFs) and other investable products. The DJIM China Offshore Hong Kong Index is weighted by free-float market capitalisation and component weights are capped at 10%. As of 30 April 2008, the index consists of 40 components, of which the top five components by free float-adjusted market capitalisation are China Mobile, China Unicom, CITIC Pacific, CNOOC and PetroChina. At the same time, the index had gained 152.9% from its base date, 31 December 2005 in a backtest. It is calculated in both US dollar and Hong Kong dollar versions and is reviewed quarterly in March, June, September and December.