Created in 2009 by the Shenzhen Stock Exchange, the ChiNext Board has been referred to as “China’s Nasdaq” for the innovative and growth-oriented Chinese firms it has attracted over the last decade. And this growth potential has been recognized in 2019, as reflected by a nearly 37% (CNY) year-to-date return for the FTSE China A Innovative Enterprises Index*.
FTSE Russell compared performance for this Index, which was launched in 2017 as a way for global investors to track the performance of fast-growing ChiNext stocks listed on the Shenzhen Stock Exchange, relative to the FTSE China A Index and the FTSE China Index.
Penny Ning Pan, director, product management:
“As the FTSE China A Innovative Enterprises Index returns this year have illustrated, opportunity can be found in innovative ChiNext Board companies. Our FTSE China A Innovative Enterprises Index was designed to provide broad exposure to ChiNext stocks across the full market capitalization spectrum, giving investors exposure to the full China equity opportunity set.”
After global equity markets opened on September 23, 2019, FTSE Russell implemented the second of three tranches in phase one of its China A Shares implementation toward adding 25% of the investable market cap of eligible large, mid and small cap China A Shares to the FTSE Global Equity Index Series and its derived indexes. FTSE Russell’s phase one China A Share inclusion has included ChiNext stocks from the start.
For more information about the FTSE China indexes and the China A Shares implementation timeline, go to the FTSE Russell website.
*Index returns as of September 17, 2019.
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