Dow Jones Indexes has launched the Dow Jones Islamic Market (DJIM) China Offshore Hong Kong Index.

The DJIM China Offshore Hong Kong Index 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, Dow Jones said in a statement.

The DJIM China Offshore Hong Kong Index is designed to serve as underlying for investment products such as mutual funds, exchange-traded funds (ETFs) and other investable products.

“The Dow Jones Islamic Market China Offshore Hong Kong Index is another innovative addition to the highly successful Dow Jones Islamic Market index series following a unique and superior methodology,” said Dow Jones Indexes editor and executive director John Prestbo.

“Market participants will find in this index a way to track Shari’ah compliant mainland China stocks that are listed in the easily accessible Hong Kong market rather than in the restricted local Chinese market.”

The DJIM China Offshore Hong Kong Index is weighted by free-float market capitalisation and component weights are capped at 10 per cent.
The index is calculated in both US dollar and Hong Kong dollar versions. It is reviewed quarterly in March, June, September and December.

Launched in 1999, the Dow Jones Islamic Market Indexes seek to measure the global universe of investable equities that pass screens for Shari’ah compliance.

The Dow Jones Islamic Market Indexes combine Islamic investment principles with Dow Jones Indexes’ objective, transparent and rules-based methodology. – TradeArabia News Service