S&P DJI unveils comprehensive China index

Sep 28th, 2015 | By | Category: ETF and Index News

ETF STRATEGY NEWS! ETF Strategy is delighted to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts and white papers. Debuting with Special Series on Technology & Innovation in China and the Digital Economy.


S&P Dow Jones Indices (S&P DJI), a leading index provider, has introduced the S&P China 500 Index, covering all Chinese share classes including A-shares and offshore listings.

S&P DJI unveil headline S&P China 500 index

The S&P China 500 index tracks a broad range of Chinese companies listed both domestically and offshore.

The index, which is suitable reference index for exchange-traded funds, has been designed by S&P DJI to capture the complete China story and they expect the benchmark to become a flagship investable index for China.

Investing in China and tracking broad stock market performance is a complicated and somewhat debatable process. Chinese A-Shares (renminbi-denominated, mainland listed shares of Chinese companies) are considered the true domestic shares and constitute a significant portion of the world’s market capitalisation; however, government regulation and intervention have conspired to create a volatile and often illiquid market. Equities of Chinese companies listed offshore, in places such as Hong Kong, Singapore, London or New York, benefit from the sophistication (e.g. greater transparency, improved governance etc) of those markets but constitute a considerably smaller portion of Chinese market capitalisation.

In response, S&P DJI has constructed this latest index which comprises 500 of the largest, most liquid Chinese companies. All Chinese share classes, including A-shares and offshore listings, are eligible for inclusion. Meanwhile, compared with other China indices, this benchmark features enhanced sector diversification thanks to a stock selection process that targets sector weights of the broad index universe.

“Despite the short-term challenges impacting the market, Chinese equities remain a key part of long-term investment strategies for many global investors given the size and importance of the Chinese economy and stock market,” said Michael Orzano, Director of Global Equity Indices at S&P Dow Jones Indices. “By introducing the S&P China 500 Index, we are proud to reaffirm our commitment to the Chinese market and to further expand the toolkit of China indices available to global investors.”

The new index has been licensed to ICBC Credit Suisse Asset Management for ETF and index fund development.

“We are excited to further enhance the accessibility of China’s equity market by leveraging S&P Dow Jones Indices’ world-class expertise in index construction and governance,” commented Richard Tang, CEO at ICBC Credit Suisse Asset Management (International). “We expect that the constructive results brought by our collaboration will significantly benefit international investment community that is increasingly looking to include China in their portfolios more meaningfully and efficiently.”

Tags: , , , , , , , ,

Leave a Comment