The introduction of the Shanghai-Hong Kong Stock Connect program in November 2014 marked an important breakthrough, as it allowed market participants to access a wide array of Shanghai-listed stocks without having to be approved for QFII or RQFII quotas. Following the introduction of the Stock Connect Program, S&P DJI introduced the S&P Access China A and the S&P Access China A Dividend Opportunities Index. Each index is based on the universe of mainland-listed shares accessible through the Stock Connect Program. All eyes are now focused on the launch of the Shenzhen-Hong Kong Stock Connect, which is expected to launch later this year.
S&P DJI has published a variety of Chinese equity indices since the mid-1990s, beginning with the S&P China BMI, a comprehensive benchmark including offshore listings available to global investors, and the Dow Jones China 88 Index, which includes the largest and most-liquid A-shares. Over the years, we have substantially increased our suite of Chinese equity indices, as asset managers and other market participants have demanded a variety of different benchmarks for the market. We will continue to monitor closely the evolution of the A-share market and consult with market participants in order to evaluate any necessary modifications to existing benchmarks and to develop innovative new indices covering the Chinese equity market.
This article was written by Michael Orzano, director, global equity indices, S&P Dow Jones Indices.
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