The world's second largest index company announced on Thursday that it will include Chinese A shares into the FTSE GEIS starting from June 2019.

According to a notice on its official website, FTSE Russell plans to implement the inclusion in three separate tranches through to March 2020 while seeking market feedback after each addition. 

File photo: IC

The Chinese shares are expected to represent about 5.5 percent of the total FTSE Emerging Index after the first phase is completed. Within the FTSE Global All Cap Index, Chinese A Shares are projected to have a weight of 0.57 percent.

The global index provider praised the efforts by Chinese authorities in improving market access to global investors, including the Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) initiatives.

CEO Mark Makepeace of FTSE Russell said the index company is pleased to announce the news and that China will also be added to a watch list for possible inclusion in the FTSE's global bond indexes.