FTSE Russell has teamed up with Shenzhen-headquartered Ping An to launch the FTSE Ping An China ESG Indices, a new index series designed to help investors better integrate sustainability considerations into their China equity allocations.
The index series is based on the headline FTSE China A Free Index, a comprehensive benchmark for the China A-Shares market, incorporating large and mid-cap stocks listed on the Shanghai and Shenzhen Stock Exchange’s including the STAR and ChiNext Board.
The FTSE China A Free Index does not apply foreign ownership limits in a bid to more accurately reflect the Chinese market for domestic investors.
The new ESG index series integrates Ping An’s proprietary sustainability framework and ratings for more than 4,000 Chinese A-shares, thereby delivering a tailored ESG approach specific to the Asian giant’s development trajectory and social and environmental circumstances.
FTSE Russell has initially unveiled two indices as part of the new series.
The FTSE Ping An China A Free ESG Advanced 50 Index selects five companies with the most robust ESG ratings from each of ten major industries, weighting its constituents by market capitalization. The FTSE Ping An China A Free ESG Advanced 100 Index, meanwhile, is slightly broader and consists of the top ten companies from each industry based on ESG rating.
Arne Staal, CEO of FTSE Russell, said: “We are delighted to partner with Ping An and build on our position as the first international provider of mainland Chinese benchmarks. The launch of the FTSE Ping An China ESG Index Series combines our complementary expertise in sustainable investing especially for the Chinese market. This partnership affirms FTSE Russell’s commitment to this market and we look forward to working closely with Ping An to advance the expansion of sustainable investing in China, which is one of the world’s most dynamic and strategically important capital markets.”
Eugene Huang, Chairman and CEO, Ping An Technology, added: “Our partnership with FTSE Russell will enable us to provide more choices to customers looking for greater flexibility and efficiency in their China investment mandate. Leveraging both organizations’ core strengths in the China market, we hope to produce China-centric products which are appropriate for China’s stage of development. Working together with FTSE Russell, we expect to help fill a gap in the market and facilitate the growth in China’s ESG investment.”