Islamic Finance, Right Here for You
The opinions put forward by our company
is primarily in accordance with the Islamic financial standards advocated by the
members of AAOIFI (The Accounting and Auditing Organization for Islamic Financial
Institutions). TYC Finance systematically adopts annual finance
report data of listed companies, then utilizes professional analysis to filter the business activities and financial data of more than 5,000 companies listed
on the Hong Kong Stock Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange. we also screened and tagged companies undertaking obvious “unacceptable”
business activities that involve alcohol, tobacco, pork, traditional financial service,
derivative product trading, gambling, erotic entertainment service, national defense
and ammunition. We also estimate business scale and revenue ratio of companies and
those surpassing prescribed specific ratio will be identified as “non-compliance.”
Our system also assigns “indeterminacy” label to those liable for controversial
and ambiguous trading activities and business formats. In addition, our company
selects principal financial ratio to conduct tests on “screening criteria” In the
future, our company will take into account customer feedback to optimize the system, so as to bring more value and accuary result to our customers.
Islamic Market Investing refers to investing only in securities that meet Islamic religious guidelines. Islamic Law or Shariah prohibits investing in lines of business considered unethical.
Actually, Islamic indices have generated a great interest outside of the Islamic community, due to excluding "unethical" industries; they share many similarities with increasingly popular social indices.
Producers of alcohol and pork-related products, providers of conventional financial services (banking, insurance, etc.) and providers of entertainment services (hotels, casinos/gambling, pornography, etc...). Tobacco manufacturers, defense and weapons companies although not all strictly forbidden for investment under Islamic Law are excluded from the index as well.
Stocks included in industries (defined in Industry Classification Benchmarks) that represent lines of business that are incompatible with Shariah are automatically excluded from the index selection pool. The remaining stocks are then subjected to a series of financial-ratio screens.
Once companies with unacceptable primary business activities have been eliminated from the pool, the remaining stocks are tested according to three principal "filters" designed to remove those with unacceptable financial ratios.
· Total debt divided by trailing 12-month average market capitalization.
· The sum of company's cash and interest-bearing securities divided by the trailing 12-month average market capitalization.
· Accounts receivable divided by the trailing 12-month average market capitalization.
A Shariah Advisory Council and an Islamic Ethics Advisory Council made of Islamic scholars, financial and legal experts counsel the HK Islamic Index on matters relating to companies' compliance.
All the information provided on this website is for reference only and is not stock and securities investment advice. TYC Finance Limited does not assume any legal liability.
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