FTSE Russell expands China offering with two new indexes
— FTSE China A Innovative Enterprise Indexes track fast-growing ChiNext stocks listed on Shenzhen Stock Exchange
— FTSE China A Stock Connect Index tracking China mainland listed stocks available through the Shanghai- Hong Kong and Shenzhen-Hong Kong Stock Connect programmes
— FTSE Russell China benchmarks widely recognised as the leading measure of the China equity market
As China continues to open its markets to international investors, FTSE Russell is pleased to confirm the launch of two new benchmark indexes for China A-shares stocks. The FTSE China A Innovative Enterprise Indexes will provide a benchmark for the fast-growing ChiNext stocks listed on the Shenzhen Stock Exchange. The ChiNext Board was created by the Shenzhen Stock Exchange in 2009 to attract listings from innovative and fast-growing Chinese firms, including high-tech companies, and now comprises of 570 listings with a total market capitalisation of US$752 billion, 23% of the Shenzhen Stock Exchange. ChiNext stocks are accessible to QFII and RQFII allocation holders and are also available to foreign institutional investors through the recently launched Shenzhen-Hong Kong Stock Connect Programme.
The FTSE China A Innovative Enterprises Indexes are free float adjusted and liquidity screened. The FTSE China A Innovative Enterprises All Cap Index will initially have 240 constituents capturing $132 billion of investable market capitalisation, 24% of which will be technology companies. In the first quarter of 2017, FTSE Russell plans to incorporate ChiNext stocks into the FTSE Global China A Inclusion indexes. Based on data as of 30 December 2016, ChiNext stocks will likely make up 9% of the FTSE China A All Cap Index investable market capitalisation.
In addition, FTSE Russell has launched the FTSE China A Stock Connect Indexes, which will track the eligible mainland A-shares available to trade through the Shanghai-Hong Kong Stock Connect Programme and the recently launched Shenzhen-Hong Kong Stock Connect Programme. The indexes will adopt the usual size and liquidity screening consistent with the FTSE China A Index Series.
Jessie Pak, Managing Director, Asia, FTSE Russell, said:
“We are delighted to further strengthen our China-linked benchmark products with the launch of these indexes. China continues to make good progress in opening its domestic A-share market to international investors and the stock connect programmes have broadened the access to stocks for those investors without QFII and RQFII allocations. The inclusion of ChiNext stocks in our FTSE Global China A Inclusion indexes reflects the rapid growth of the ChiNext market and further enhances the representativeness of our China benchmarks. Our broad range of transparent benchmarking tools and tradable indexes help meet the needs of our international customers to track their investment performance and create investment products, such as ETFs”.
With a strong track record in developing China market indexes, FTSE Russell China benchmarks are widely recognised by investors and issuers globally as the leading measure of the China equity market and the natural choice for creating China-focused investment products. The broad spectrum of market benchmarks and well known tradable indexes, cover all sectors and Chinese share types, a range of asset classes and various investment themes including style, dividend yield, and domestic and global exposure indexes.
In 2015, FTSE Russell launched its FTSE Global A Inclusion Indexes as a transitional tool for investors in preparation for the eventual inclusion of China A-shares in its widely followed global benchmarks. China A-shares remain on FTSE Watch List for possible inclusion as a Secondary Emerging market.
More information on our broad range of FTSE Russell China benchmarks can be found on our website
– Ends –
For further information:
Ed Clark, +44 (0)20 7797 1222
Tim Benedict, +1 212 314 1199
Hong Kong: Fennie Wong, +852 2164 3267
Sydney: Laura McCrackle, +61 2 8823 3526
Notes to editors:
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit www.ftserussell.com
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.