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Index IDEA: China N Shares rise to top of China equity share class alphabet soup

The FTSE China N Share All Cap Index, consisting of companies controlled by mainland Chinese companies or individuals, incorporated outside and deriving a majority of revenue or assets from China and trading on US-based exchanges, rose 4.5% (USD) in 2018 as of July 2, outpacing all other FTSE China equity share class indexes. It has risen 26.1% over the last year.[1]

Global index provider FTSE Russell recently examined this trend and provides insight into the characteristics of this unique China share class:

Penny Ning Pan – director, global product development, FTSE Russell

“Unlike the much broader FTSE China All Cap Index, the FTSE China N Share All Cap Index currently has little to no exposure to the Basic Materials, Telecommunications and Consumer Goods industries, which underperformed in 2018. Instead, the index has high exposure to the Consumer Services and Technology Industries, which helped the index to remain in the positive territory YTD despite recent downturns.”

FTSE Russell began adding N shares to the FTSE China All Cap Index in September 2017 and has now completed the transition. For global investors looking to pursue investment opportunities in China through a wide range of entry points, FTSE Russell provides a broad range of China indexes for market exposure. For more information China benchmarks from FTSE Russell, go to the FTSE Russell website.

 

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[1] Source: FTSE Russell. Data from July 2, 2017 to July 2, 2018. Past performance is no guarantee of future results. Please see the end for important legal disclosures.

 

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Views expressed by Penny Ning Pan of FTSE Russell are as of July 9 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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