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. Over 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 December 2012 review:
|
Inclusions |
Exclusions |
1 |
China Railway Construction (A) |
Shanghai Electric Group (A) |
2 |
Gree Electric Appliance (A) |
Shanghai International Port (A) |
The FTSE China 25 Index, a tradable index which captures the largest investable Chinese stocks (H Shares and Red Chips) listed on the Hong Kong Exchange, sees one change approved:
|
Inclusions |
Exclusions |
1 |
Citic Securities (H) |
Aluminum Corporation of China (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 21 December 2012, with the next review on 5 March 2013. The summary of index changes is shown in the Appendix.
The FTSE Policy Group also recently approved a decision to include P Chips in the FTSE China Index Series after the March 2013 review in order to capture the full opportunity set of investable Chinese companies and to provide consistent treatment of such companies. The FTSE China Index Series will then include Hong Kong listed H Shares, Red Chips, P Chips and China listed A Shares and B Shares, with P Chips reclassified from Hong Kong to China following the change. The change will take effect on 18 March 2013. The FAQ document is available for more information.
More information about the FTSE China Index Series including index rules governing the series is available at www.ftse.com/china.