MSCI is expected to make an announcement regarding the inclusion of A-shares in its global benchmarks on June 9. FTSE is creating two transition indexes to ease the move of A-shares into traditional benchmarks.
“The two new Emerging Markets indexes include China A Shares at a weighting equivalent to total R/QFII allocations. The A Share weighting will increase as total R/QFII allocations increase and the China A Shares inclusion indexes will merge seamlessly with the standard FTSE Emerging Markets indexes when China A Shares fully meet FTSE’s country classification criteria for emerging markets,” according to the FTSE Russell statement.
FTSE is the dominant provider of A-shares indexes with over 70% A-shares ETFs listed in Hong Kong tracking the a FTSE benchmark.
The CSOP FTSE China A50 ETF (NYSEArca: AFTY), the first ETF to be listed independently in the U.S. by a Chinese asset management company, debuted in March and tracks FTSE China A50 Index. AFTY is up nearly 3% and earlier hit an all-time high. [Another Good Year for new ETFs]
FTSE Russell is also the index provider for the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange.
CSOP FTSE China A50 ETF
