The Korea Exchange (KRX) launched two new global indices jointly with Standard & Poor’s (S&P), i.e., S&P/KRX Asia100 and S&P/KRX Exchanges, from April 1, 2009. The two global indices are designed, developed and owned by S&P, and calculated, maintained and distributed by the KRX.
S&P/KRX Asia100 measures the performance of top 100 companies, based on market capitalization, listed on 5 Asian exchanges. The distribution of constituents per country is shown below.Distribution of constituents of S&P/KRX Asia100
Korea | China | Taiwan | Hong Kong | Singapore | Total | |
No. of constituents | 24 | 19 | 26 | 20 | 11 | 100 |
Market cap. (%) | 23.0 | 30.8 | 19.9 | 17.2 | 9.1 | 100.0% |
S&P/KRX Asia 100, a benchmark index for Asian equity portfolio, is significant because it responds to the needs of various global investors by broadening the index base to include the blue-chip stocks of Asian countries. It is anticipated that when the investment instruments based on S&P/KRX Asia 100 such as ETFs and derivatives are introduced, the investment in the Asian region will drastically increase.
S&P/KRX Exchanges measures the performance of the listed exchanges in the world (as of April 2009, there are 19 listed exchanges). Designed as a benchmark for portfolio comprised of stocks of world exchanges, when the investment instruments based on S&P/KRX Exchanges are introduced, a new investment opportunity would be offered to the global investors.
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