FTSE Keeps China A Shares on Watch List for Emerging IndexesBy
China’s mainland stocks will remain on FTSE Group’s watch list for potential inclusion in its secondary emerging-market benchmark gauges tracked by international money managers, the London-based index provider said.
FTSE Russell will give an update in March 2016 before the next annual review of markets on the watch list in September 2016, according to the statement released Friday.
In a transitional move, FTSE Group added China’s stocks in two new emerging-market indexes in May, laying the groundwork for adding the equities to its global benchmarks. The new gauges are called FTSE Emerging Markets China A Inclusion Indexes, with one for all-cap stocks and the other for large- and mid-cap shares.
The Chinese government has taken unprecedented measures to halt a $5 trillion rout in mainland equities, including banning major shareholders from selling shares and allowing more than 1,400 companies to temporarily suspend trading. The Shanghai Composite Index has fallen 38 percent from its June 12 high as a boom turned to bust.
MSCI Inc. held off from adding mainland stocks to its benchmark indexes in June, opting to work with the nation’s securities regulator to overcome remaining obstacles such as investor quotas and ease of access.
Global investors are still subject to purchase limits under the Shanghai-Hong Kong exchange link, which started in November and allowed anyone with a Hong Kong brokerage account to gain access to the mainland stock market.
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