Reinforcing its Market-Leading Position in Mainland China
Chow Tai Fook Jewellery Group Limited ("Chow Tai Fook" or the "Company", stock code: 1929) has been selected as a constituent stock of the Hang Seng China 50 Index ("China 50 Index") effective from 10 September 2012.
Chow Tai Fook is one of only 34 Hong Kong-listed companies in the China 50 Index and it is the first and only jeweller to be included in this Index since it was launched in June 2008.
Dr. Henry Cheng, Chairman of Chow Tai Fook said, "We are pleased to be the first and the only jeweller to be included in the China 50 Index. This reinforces to investors the market leadership and unparalleled scale of our jewellery business in Mainland China, where over 90% of our 1,674 points of sale are located. We believe that inclusion in both the China 50 Index and the Hang Seng Mainland 100 Index helps investors understand us better and underpins their confidence in our stock and prospects. We see encouraging expansion in the mainland market by penetrating into Tier 2, 3, and 4 cities strategically. We have recently broken ground on the 600-mu Chow Tai Fook Jewellery Park in Wuhan, an integrated production and logistics centre to cope with the Company’s rapid growth and long-term development in the Mainland. In addition, a new Mainland headquarters office in Shenzhen will be completed in 2013. These projects will facilitate and support our further expansion in the Mainland market with huge untapped potential for our jewellery products."
China 50 Index measures the overall performance of the 50 largest China-focused companies by market capitalisation listed on Hong Kong and / or Mainland China stock exchanges. The China 50 Index adopts a cross-market approach with a broad coverage that includes Mainland-listed A and B shares, Hong Kong-listed H shares, Red Chips and shares of other Mainland companies. It offers a benchmark and basis for derivatives, QDII and QFII portfolios, and exchange-traded funds that are aiming for comprehensive China exposure.
The China 50 Index is reviewed semi-annually by Hang Seng Indexes Company Limited. To be eligible for inclusion in the China 50 Index, a company must already be a constituent of the Hang Seng Mainland 100 Index, which Chow Tai Fook was selected to join in June 2012.