FTSE Russell, a leading global multi-asset index, data and analytics provider, said Saturday that it will add Chinese A shares to its widely-tracked global benchmarks next month.
The addition will be officially effective after the close of share markets on June 24.
According to the plan of FTSE Russell, this move marks the first stage of incorporating Chinese shares into its indexes. In this stage, 1,097 Chinese stocks, or 20 percent of A shares, will be brought into the indexes, drawing an expected $10 billion from passive investors.
FTSE Russell will add 40 percent of A shares to its indexes in September, and another 40 percent in March next year.
As the world's second largest economy after the United States, China has achieved extraordinary economic transformation over the past four decades. And as China's economy has transformed, so has the size and make-up of its equity market.
FTSE Russell CEO Mark Makepeace said the company will continue to work with global customers and provide benchmark indexes and analysis solutions to promote investment in Chinese stocks and fixed-income products.
