BEIJING, Dec. 17 (Xinhua) -- XH·Emerging Consumption Brands Index (989006.SZ), an indicator tracking 50 influential emerging consumption sector companies listed in China, was inaugurated to the public on Wednesday.
The index, released by Xinhua Indices of China Economic Information Service (CEIS) on basis of the brand value of the component stocks, is dedicated to objectively and accurately reflecting the performances of these constituents on China's capital market.
Yang Liyu, executive vice secretary general of Asian Financial Cooperation Association (AFCA) said the XH·Emerging Consumption Brands Index is an important investment vehicle for investors under the country's "dual circulation" development pattern.
Over the long run, consumers in the new era pay more and more attention to brands and product quality, which in turn drives up upgrading of consumer brands and provides them more opportunities for development, according to Yang.
Xiang Pengfei, head of the securities derivative transaction department of China Securities, said that the XH·Emerging Consumption Brands Index embodies features of new economy sectors such as consumer electronics, new energy vehicle, new retail, culture and entertainment IP, medical beauty and healthcare, etc. and is expected to effectively reflect the achievements of domestic demand expansion and consumption upgrading.
Focusing on the rapidly recovering consumption sector, the XH·Emerging Consumption Brands Index is compiled to demonstrate investment chances in emerging consumption area and has both short-term and long-term investment value, suitable for insurance companies in favor of increasing index investing nowadays, noted Xie Yuantao, vice dean of the School of Insurance and Economics of the University of International Business and Economics.
Yang Chao, head of the index and quantitative investment department of Tianhong Asset Management Co., Ltd., said that Xinhua Indices has a complete set of brand value appraising system, which can help investors discover eminent and valuable brands in China's ever changing consumption industry.
The index tracks consumption sector which remains a field with long-term investment value, and its component selection rules enable the indicator to pick quality consumption firms, which makes the index a convenient tool of investment in emerging consumption sector.
With its strategy co-developed by Xinhua Finance, a financial information platform of CEIS and Tianhong Asset Management Co., Ltd., the index has a base date on December 30, 2016 and base points of 1,000 points.
Its components are stocks of companies engaged in as many as 15 industries and the top five industries with the largest weightings include the food and beverage, home appliance, media, medicines and textile.
Chart I: Weightings of the top five industries tracked by the XH·Emerging Consumption Brands Index
| Stock Code | Company name | Weighting (%) |
| 03690.HK | Meituan | 12 |
| 01810.HK | Xiaomi Corporation | 10.96 |
| 000333.SZ | Midea Group Co., Ltd. | 10.69 |
| 00700.HK | Tencent Holdings Ltd. | 8.75 |
| 000651.SZ | Gree Electric Appliances, Inc. of Zhuhai | 8.35 |
By early December, the XH·Emerging Consumption Brands Index boasted significant comparable advantages compared with indices of the same type and other market benchmarks with an accumulated yield of 157.4 percent.
Chart II: Performances of the XH·Emerging Consumption Brands Index, CNI SZ-HK Consumer Staples Sector Index and CSI 300 Index by early December, 2020
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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