S&P makes first foray into A-share indices

Home>>Business

Last updated at: (Beijing Time) Tuesday, March 02, 2004

S&P makes first foray into A-share indices

Standard & Poor's launched its first trial on March 1 to develop A-share indices in China in partnership with a local financial institution with the launch of the S&P/CITIC index series.

DISCUSSION

CHINESE

SEND TO FRIEND

Standard & Poor's launched its first trial on March 1 to develop A-share indices in China in partnership with a local financial institution with the launch of the S&P/CITIC index series.

The indices, named S&P/CITIC 300 and S&P/CITIC 50, are jointly developed by Standard & Poor's and CITIC Securities Co.

The first one is a benchmark index whose constituents are 300 A-share companies with large capitalization and good liquidity, representing a diversified range of industries, while the second index is more of an investment guide, tracking the movements of the 50 large-capped blue-chips.

The opening of the A-share market will have a far-reaching impact on global investment patterns. A critical need has therefore emerged for a comprehensive benchmark to accurately track the China market, said Robert A. Shakotko, Standard & Poor's Managing Director of Index Services.

Standard & Poor's has used the company's global indexing methodology in constructing the S&P/CITIC indices. A joint venture will be established between the company and CITIC Securities to independently operate the indices, he said.

CITIC Securities Chairman Wang Dongming said the two sides would increase co-operation in the future and develop new products like index funds, exchange-traded funds and index futures.

Harvest Fund Management and Greatwall Fund Management yesterday also decided to apply the newly issued indices as a basis to develop their own index funds.

Apart from the indices issued by the two stock exchanges in China, some financial institutions have also developed indices tracking A shares or B shares over the past few years, including the Xinhua/FTSE index series that were jointly developed by Xinhua Financial Network and the FTSE Group.

Source: China Daily

Questions?Comments? Click here

Standard & Poor offers A-share indices with Chinese partner

S&P plans reliable index product for investors in China

Sinopec hires int'l rating company

Japanese media follows changes regarding 3 ' most-wanted' things for Chinese families ( 2 Messages)

It is unexpectedly easy to defeat "China Threat" theory: Japanese economist ( 17 Messages)

Scientific concept of development crucial to China's future growth: Premier ( 4 Messages)

China issues human rights record of the US ( 4 Messages)

China to promote "cocktail weight loss therapy" in response to WHO plan ( 2 Messages)