Tuesday September 8 2020

News Source: Global Exchanges

Focus: Derivative Market Segment

Type: General

Country: Korean Republic

Link: https://bit.ly/2DDudmj




On 8th September 2020, the Korea Exchange (KRX) announced the launch of its KRX BBIG K_New Deal Indices which will be composed of 5 of its indices of leading companies to drive the paradigm switch of the Korean economy.

To materializes the vision of the government’s Comprehensive Plans for its Korean Version New Deal, the K_New Deal Indices were developed by selecting BBIG (Battery, Bio, Internet, and Game) industries, which have reached the limelight as future growth-leaders, to be included in the new deal.

BBIG (Battery, Bio, Internet, and Game)  industries are key areas of the K_New Deal policy, and the total market capitalization of the 10 major related issues is 322 trillion won (20.4% in the KOSPI, as of the end of 20th August.

The average annual yields of the five KRX BBIG K_New Deal indices for the past five years have been approximately 30%, demonstrating superior performance compared to the KOSPI, which are around 3%.

By proactively developing indices centred on future growth-leading industries, a direction for the future new deal industries is presented.

Also, it is expected to act as a bridge to help market funds flow into the capital market by promoting the early listing of ETFs (in October) following the index announcement.

 Of the total 40 issues, 19 KOSDAQ issues have been selected, which are expected to contribute to improving interest in and revitalizing the KOSDAQ market.

KRX will commence the development of a ‘Carbon Efficiency Green New Deal Index’ in October to promote the spread of the Korean Version New Deal policy.

KRX will develop indices in a way that will promote more investments to be made in companies with higher carbon efficiency scores by assigning points according to their industrial characteristics and carbon emissions per unit of sales for each issue. The aim is to help companies convert their business environments to more eco-friendly and low-carbon based operations.

Click on the above link for further information.