S&P Dow Jones Indices (S&P DJI), has launched the S&P China 500 Index, a new headline index covering all Chinese share classes including A-shares and offshore listings and representing the broader sectors in the country’s economy.
Designed to capture a complete China story, the benchmark is expected to become a flagship investable index for China. The S&P China 500 Index has been licensed to ICBC Credit Suisse Asset Management for ETF and index fund development.
The S&P China 500 Index comprises five hundred of the largest, most liquid Chinese companies while approximating the sector composition of the broader equity market. All Chinese share classes including A-shares and offshore listings in Hong Kong and the US 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,” says Michael Orzano (pictured), 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 tool kit of China indices available to global investors.”
“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,” says Richard Tang, CEO at ICBC Credit Suisse Asset Management (International) Company Limited. “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.”
In view of the increasing opening up of the China market, S&P DJI has stood at the forefront of developing an extensive lineup of China-focused indices across various asset classes. These indices benefit global investors with a wide range of investment concepts and opportunities that are set to become more prevalent as interest in and access to China’s financial market expand.