HSI Services, the company which compiles the Hang Seng Index (HSI), yesterday announced details of its long-awaited Hang Seng China-affiliated Corporations Index (HSCCI), which will track the market's recent star performers - red chips.
The index, to be launched next Monday, was unveiled the day after red chips - mainland backed investment companies incorporated in Hong Kong - suffered their biggest sell-off in more than a year.
The index will track the performance of 32 red chips and like the HSI, it will be market capitalisation-weighted and calculated on a minute-by-minute basis.
It is being backdated to January 4, 1993, with a base value of 1,000.
HSI Services chairman Anthony Wong Kin-kwan said in April and May this year growth in the HSCCI outstripped the rise in the HSI, reflecting the high level of investor interest in red chips.
The performance of red chips in the new index is similar to the HSI in 1993. Then in 1994 and 1995, the HSCCI under-performed the HSI.
Growing interest this year created a need for a new index to reflect the performance of the stocks, Mr Wong said.