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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
 
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For further information:

Global Media 
Ed Clark, +44 (0)20 7797 1222
Tim Benedict, +1 212 314 1199
newsroom@lseg.com

Regional Contacts
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 

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