S&P Dow Jones Indices (S&P DJI) has launched the S&P China 500 Index, covering all Chinese share classes including A-shares and offshore listings and representing the broader sectors in the Chinese economy.
It includes 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader equity market.
The index provider said that the benchmark features “enhanced sector diversification thanks to a stock selection process that targets sector weights of the broad index universe.”
The S&P China 500 Index has been licensed to ICBC Credit Suisse Asset Management for ETFs and index fund development.
Michael Orzano, Director of Global Equity Indices at S&P Dow Jones Indices, commented: “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.
“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.”
Richard Tang, CEO at ICBC Credit Suisse Asset Management (International), added : “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.”