What’s new: FTSE Russell will add 76 Chinese mainland-listed A-share stocks to one of its indexes, the global index provider’s latest semi-annual review of its Global Equity Index Series (GEIS) shows.
Firms added include chip designer Vanchip Tianjin Technology Co. Ltd. (688153.SH), biotech company MGI Tech Co. Ltd. (688114.SH) and brokerage Capital Securities Co. Ltd. (601136.SH), according to lists of constituent companies added to and deleted from the GEIS All Cap Index.
The index covered 10,069 large-, mid-, and small-cap stocks in 49 developed and emerging economies as of Jan. 31, data from FTSE Russell show. Of the total, 2,361 stocks were listed on the mainland with a market cap of $1.85 trillion and carried a weighting of 2.45%.
The changes will take place on March 18, according to FTSE Russell’s review. The index is tracked by many global fund management companies including U.S.-based Vanguard Group Inc.
FTSE Russell also announced the results of its quarterly review of the FTSE China Index Series. Starting March 18, four stocks will be added to the FTSE China A50 Index, including China Everbright Bank Co. Ltd. (601818.SH) and nuclear power company CGN Power Co. Ltd. (003816.SZ), while four will be deleted, including Bank of Ningbo Co. Ltd. (002142.SZ) and pharmaceutical company Wuxi Apptec Co. Ltd. (603259.SH).
The background: The addition of more mainland-listed stocks by FTSE Russell to its GEIS stands in contrast to the move by MSCI Inc., another major index provider. Earlier this month, MSCI announced the cutting of 66 companies from its MSCI China Index, the largest number of removals in at least two years, amid China’s stock market rout.
Companies trimmed from the MSCI index include property developers Gemdale Corp. (600383.SH) and Greentown China Holdings Ltd., and China Southern Airlines Co. Ltd. (600029.SH).
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Nerys Avery (nerysavery@caixin.com)
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