FTSE Russell has added China-listed equities to its global indices for the first time. Despite the country’s negative headlines, Trump’s proposed tariffs and the impending trade talks with the US, China has reached a significant investment milestone.
In June, FTSE Russell added mainland China equities, known as A-shares into its Emerging Markets Index. The inclusion of over 1,000 small, mid- and large-cap China A-Shares is expected to constitute around 5.5% of the total FTSE Emerging Index.
China has achieved substantial transformation in the last forty years, standing now as the world’s second largest economy after the United States.
Cavendish clients already have an allocation to Chinese equities, which equates to approximately 3% of the total equities held in any given portfolio.