Bringing you live news and features since 2006 

China Post Global’s Danny Dolan comments on FTSE Russell inclusion of China’s A-shares

RELATED TOPICS​

Danny Dolan (pictured), managing director of asset manager and ETF provider China Post Global has commented on the decision to include China’s A-shares in the global FTSE Russell benchmarks.

Dolan says: “Despite current trade war threats, China is a long-term megatrend and investors know that. The decision of FTSE Russell to include Chinese A-shares in their global indexes reflects the growing demand from international investors for exposure to China, as we see foreign investment increase and large institutional allocations become more commonplace. 

“This inclusion is a further concrete step in the ongoing integration of the Chinese stock market into the global financial system, following the historic inclusion of A-shares in the MSCI Emerging Markets Index earlier this year. The Chinese government has accelerated the opening up of the market by addressing issues around capital controls and clearing and settlement, resolving previous concerns and ensuring that China’s importance to the global economy cannot be ignored anymore. 

“Together with the highly anticipated Shanghai-London Stock Connect, which is likely to start trading by the end of the year, and the existing Hong Kong Stock Connect program, the inclusion of A-Shares in the FTSE Russell benchmarks will step up foreign investment into China. However, given the lack of familiarity with the Chinese equity market among many international investors, we believe that diversified and innovative China funds could be a better fit for certain strategies. For passive investors, for instance, taking a selective approach to stock screening, such as smart beta, rather than embracing the market as a whole, can help mitigate the effects of volatility and leverage which are still a concern for many international investors.”

 

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by