Industry Updates

JP Morgan AM partners with CSI to launch China A-Shares strategic beta index

Tom Eckett

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JP Morgan Asset Management (JPMAM) has teamed-up with China Securities Index (CSI) to launch a China A-Shares strategic beta index.

The CSI JPMorgan Yangtze River Delta Area Strategic Beta index will launch on 10 June, focusing on the Yangtze River Delta Region, which has a GDP of RMB19.5trn, 24% of China’s overall GDP.

The region has 1,200 publicly listed A-Share companies, 34% of China’s listed companies and is home to Shanghai, Nanjing and Hangzhou.

From the 1,200-stock universe, the index will include around 150 equities that rank strongly on a multi-factor screening process. In order to be selected, stocks must be trading on attractive valuations and have strong liquidity.

Philippe El-Asmar, head of beta strategies, Asia Pacific, at JPMAM, commented: “China A-shares are a deep and liquid market with low correlation to other equities markets.

“With expanding market liberalisation and greater flagship index inclusion, investors are seeking more efficient and effective ways to access this market.

“JPMAM’s ongoing investments in China reflect our long-term and strategic commitment to one of the largest, fastest-growing and most exciting markets in the world.”

The launch comes after MSCI announced plans to include China A-Shares in its wider emerging market indices on 28 May with its flagship Emerging Markets index now comprising of 1.8% A-Shares.

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