Stoxx unveils blue-chip China A-share index

Feb 28th, 2013 | By | Category: ETF and Index News

Stoxx, a leading global index provider, has launched the Stoxx China A 50 Index, a blue-chip index that comprises 50 of the largest Chinese A-shares. The index follows Stoxx’s established blue-chip index methodology.

Stoxx unveils blue-chip China A-share index

Stoxx has unveiled the Stoxx China A 50 Index.

The index is derived from the parent Stoxx China A Total Market Index, which covers approximately 95% of the free-float market capitalisation of the investable stock universe of Chinese A-Shares.

Chinese A-shares are traded in domestic currency (Renminbi) on the Shanghai and Shenzhen stock exchanges and are reserved for domestic enterprises and individuals, as well as qualified foreign institutional investors (QFIIs).

All companies in the parent index are sorted by free-float adjusted market capitalisation and the 50 largest are selected for inclusion in the blue-chip index.

Reflecting the characteristics of the mega-cap segment of the Chinese equity market, the index has a large exposure to financials, with Ping An Insurance, Industrial Bank, China Merchants Bank, China Minshing Banking Corporation and Shanghai Pudong Development Bank among the largest weights.

Hartmut Graf, chief executive officer, Stoxx, said: “Our new index is geared towards market participants who expect high prosperity levels in the Year of the Water Snake, and want to participate in the performance of China’s largest 50 A-shares.”

The index will be reviewed annually in September and rebalanced quarterly. The index is available in euro, US dollar, HK dollar and Chinese renminbi.

The index will compete against the FTSE China A50 Index and MSCI China A 50 Index, which, like the new Stoxx index, track 50 of the largest Chinese A-shares. Of these, the FTSE index has proved the most successful in terms of investor uptake, with more than $10 billion in ETF assets benchmarked to the index.

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