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FTSE Group (“FTSE”), the award-winning global index provider, has created a new customised version of its FTSE Greater China Index for State Street Global Advisors Asia Limited (State Street). The new index, FTSE Greater China HKD Index, will be the basis of State Street’s first Greater China themed Exchange Traded Fund (ETF) which lists in Hong Kong today.
The new FTSE Greater China HKD Index is calculated in Hong Kong Dollars (HKD) and made up of large and mid cap China (H Shares, B Shares and Red Chips), Hong Kong SAR (Hong Kong stocks and P Chips) and Taiwan stocks. Creating products based on the index will give international investors access to the Greater China growth story without the restriction of Qualified Foreign Institutional Investment (QFII) quotas.
FTSE continues to build on its leadership position in the Chinese market through index benchmarking and the customization of investment solutions which meet the needs of both global and regional investors. Nearly 60% of assets under management in Chinese ETFs listed globally are benchmarked to FTSE’s China Index Series. Licensing the use of FTSE Greater China HKD Index for State Street’s ETF further enhances the wide range of investment solutions available to global investors who want financial exposure to Greater China.
Paul Hoff, Director of Business Development, Asia said, “FTSE indices have become the natural choice for ETF issuers globally who wish to create new, Chinese themed investment products. These indices are built on FTSE’s internationally recognised standards which are widely accepted as the basis for tradable products globally. The new FTSE Greater China HKD index further demonstrates FTSE’s ability to innovate through customisation. We are delighted to have worked with State Street on their new ETF which aims to capture the Greater China growth story.”
Bernard Reilly, Senior Managing Director and Head of Asia Pacific for State Street commented, “There is a growing interest among investors to access investment opportunities across the Greater China region and therefore capture the broader China growth story. China, Hong Kong and Taiwan each have their own unique strengths and advantages which, when combined, generate many vital synergies for long term growth. Choosing the representative and easily replicable FTSE Greater China HKD Index as the basis of our ETF helps investors capture three markets in one in a cost efficient and transparent way.”
The customised FTSE Greater China HKD Index is based on the FTSE All-World Index and therefore adopts award winning methodology which includes free float adjustment and liquidity screens, and is managed in accordance with a clear and transparent set of index rules.
For more information on the construction of FTSE Greater China Index, please visit www.ftse.com/allworld.
