China A-shares to join FTSE GEIS on June 24


(File photo: VCG)

FTSE Russell, a leading global multi-asset index, data and analytics provider, announced Friday that it will add Chinese A shares to its widely-tracked global benchmarks commencing June 24.

At a launch ceremony held at the Shenzhen Stock Exchange, FTSE Russell's CEO Waqas Samad said the inclusion would be an important mark of the development and opening-up of China's stock market.

FTSE Russell will continue to provide benchmark indexes and innovative analytics solutions to meet the demands of global investors and promote investment in Chinese stocks and bond products, Samad said.

According to a statement on FTSE Russell's website, China A-shares will be included in the FTSE Global Equity Index Series (FTSE GEIS) as a secondary emerging market. Implementation of phase 1 will run from June 24 till March 23, 2020, during which 25 percent of the investable market capitalization of eligible large-, mid-, and small-cap China A-shares will be added to the FTSE GEIS and derived indexes.

The announcement came after global index provider MSCI's decision to increase index weighting for China A-shares and is expected to beef up the influence of Chinese listed companies.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said the inclusion fully reflected the trust of the international investment community in China's positive economic fundamentals and long-term trajectory as well as the reform and opening-up of its capital market.

The top securities watchdog will continue to implement major opening-up measures of China's capital market and facilitate the inflow of overseas long-term funds, according to Fang's written speech at Friday's ceremony.