FTSE Changes China Indexes Due To US Executive Order
Further to the “Executive Order by the President of the United States of America – Next Steps” notification published on 30 November 2020, and following feedback received from index subscribers and other stakeholders, this notice confirms the treatment of affected securities in the FTSE Global Equity Index Series (GEIS), indexes that are derived from FTSE GEIS, and the FTSE China A Inclusion Index.
For standard indexes in the FTSE GEIS family, including indexes directly derived from FTSE GEIS, and also for the FTSE China A Inclusion Index, FTSE Russell will act in accordance with the FTSE Russell Index Policy Guide, “In the Event Clients are Unable to Trade a Market”, section 2.3, “Sanctions are imposed which restrict investment into foreign jurisdictions”.
The index constituents listed in the table below will be deleted from the FTSE Global Equity Index Series (GEIS), the FTSE China A Inclusion Indexes and associated indexes in conjunction with the FTSE GEIS December 2020 quarterly review, effective from the open on Monday 21 December 2020.
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The move is set to result in $100m of passive inflows to STAR stocks.
This is the first offshore institution to invest in a mainland futures exchange.
Eligible stocks will be included in Northbound trading under Shanghai-Hong Kong Stock Connect.
The listing helps the internationalization of China’s financial markets.
More Shenzhen Stock Exchange and the Shanghai Stock Exchange stocks will be eligible.