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Investing China’s SOE: The New Valuation and the New Plan

Writer's picture: CUHK Quant Trading SocietyCUHK Quant Trading Society



Key Takeaways:

  • Hang Seng Indexes launched the Hang Seng China SOE Index (HSCSOE) in April 2023, focusing on Mainland Chinese state-owned enterprises (SOEs) listed in Hong Kong

  • SOEs are outperforming the market with the HSCSOE Index showing a 48.3% increase from October 2022

  • Yi Huiman, Chairman of the China Securities Regulatory Commission, emphasized the need for a valuation system with “Chinese characteristics”

  • The digital transformation of SOEs is a key focus for the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

  • This shift towards digitalization is expected to optimize the functioning of SOEs and contribute to constructing a digital China


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