New FTSE index combines A- and H-Shares 30 March 2016London Reporter: Stephanie Palmer
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FTSE Russell has created its first index to represent both China A-Shares and Hong Kong H-Shares.
The FTSE Chine A-H 50 Index has been licensed by Deutsche Bank Exchange Traded Funds (ETF) listed on the London Stock Exchange and Deutsche Börse.
A-Shares, or securities of Chinese companies trading on the Shanghai or Shenzhen stock exchange, are quoted in Chinese Yuan and are only available for trading to Chinese residents, or through the Qualified Foreign Institutional Investors (QFII) or Renminbi QFII schemes.
H-shares, however, are Chinese securities nominated by the central government to trade on the Stock Exchange of Hong Kong, quoted in Hong Kong dollars and available to all traders.
On the new index, companies that have both A- and H-Shares will only have one share listed – that of the lower price.
Mark Makepeace, CEO of FTSE Russell said: “FTSE Russell has a long track record of working in China, and is the most active benchmark provider supporting international investment in the region.”
“As the Chinese domestic market opens, we continue to develop products that provide investors with a variety of tools to capture different aspects of the market. The FTSE China A-H 50 Index reflects our desire to create new index solutions for the region, as we look to support the diverse range of investment needs.”
The new service is in addition to the FTSE China 50 Index and FTSE China A50 Index. According to FTSE Russell, more than half of non-China domiciled Chinese ETF assets currently track China-related FTSE Russell benchmarks.
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