Consisting of 3 Sub-indices
The Korea Exchange announced on Dec. 9 that a KRX-CSI joint index would be announced on Dec. 20.
The Korea Exchange and the Shanghai Stock Exchange signed a memorandum of understanding in May for further cooperation in capital markets. The new index is a part of the MOU and will cover South Korean and Chinese stocks that are particularly promising in terms of growth potential.
The joint index consists of three sub-indices. One will cover 50 enterprises representing the South Korean and Chinese economies. Another will cover 30 South Korean and Chinese companies in the electric vehicle industry. The other will cover 30 in the semiconductor industry.
Specifically, the first sub-index includes Samsung Electronics, Naver, Kweichow Moutai and CATL. The second includes CATL, LG Energy Solution, BYD, SK On, Samsung SDI and Guoxuan. “These six companies accounted for 73.4 percent of the global electric vehicle battery market in October this year,” the Korea Exchange said, adding, “This means the index is likely to become a stock price index representing the global electric vehicle battery industry.”
“The semiconductor sub-index is expected to show a solid growth with South Korea and China concentrating on their memory and non-memory chip sectors, respectively,” it mentioned, continuing, “We are planning to develop similar joint indices with Taiwan, Hong Kong and Singapore as well.”