FTSE Group (“FTSE”), the award winning global index provider, announced the results of the FTSE China Index Series quarterly review today.
The FTSE China Index Series is reviewed quarterly by the independent FTSE Asia Pacific Index Advisory Committee. The committee is made up of leading local and international market professionals who approve all index changes and ensure that the index review complies fully with a set of highly transparent and publicly available index rules.
FTSE China indices are widely regarded as a leading measure of the China equities market by domestic and international investors. Nearly 60% [1] of Assets under Management (AuM) in China Exchange Traded Funds (ETFs) issued globally, track a FTSE China index. The most widely followed indices are the FTSE China A50 Index and the FTSE China 25 Index, which are used as the basis of the world’s largest China themed ETFs.
The FTSE China A50 Index represents the 50 largest A-Share companies in China and is tracked by both domestic investors and internationally through a range of QFII investment portfolios. Two changes to this index have been approved as a result of the March 2013 review:
|
Inclusions |
Exclusions |
1 |
Bank of Beijing (A) |
Aluminum Corporation of China (A) |
2 |
Great Wall Motor (A) |
Zijin Mining Group (A) |
The FTSE China 25 Index, a tradable index which captures the largest investable Chinese stocks (H Shares, P Chips and Red Chips) listed on the Hong Kong Exchange, sees two changes approved:
|
Inclusions |
Exclusions |
1 |
Belle International (P) |
Yanzhou Coal Mining (H) |
2 |
Tencent Holdings (P) |
Zijin Mining Group (H) |
Several changes were also approved to other indices in the comprehensive FTSE China Index Series which consists of over 260 indices covering A Shares, B Shares, H Shares, Red Chips, Hong Kong stocks and Bonds. Full details of all inclusions and exclusions for the FTSE China Index Series can be obtained at www.ftse.com/china. All changes will be made effective after the close of trading on 18 March 2013, with the next review on 4 June 2013. The summary of index changes is shown in the Appendix.
In December 2012, the FTSE Policy Group approved the introduction of actual free float (rounded up to the next 1%) in all FTSE indices, including the FTSE China Index Series. In addition, P chips are being reclassified to China to best capture the full opportunity set of investable Chinese companies, and will also be included in the FTSE China Index Series. These changes will also take effect on 18 March, 2013.
The FAQ document for the actual free float changes is available here for more information.
The FAQ document for P Chips reclassification is available here for more information.
More information about the FTSE China Index Series including index rules governing the series is available at www.ftse.com/china.
[1] Source: Blackrock