S&P Dow Jones Indices to Add 1,099 Chinese Mainland Stocks to Emerging BMI
Li Ailin
DATE:  Sep 09 2019
/ SOURCE:  yicai
S&P Dow Jones Indices to Add 1,099 Chinese Mainland Stocks to Emerging BMI S&P Dow Jones Indices to Add 1,099 Chinese Mainland Stocks to Emerging BMI

(Yicai Global) Sept. 9 -- S&P Dow Jones Indices will add 1,099 companies listed on the Shanghai and Shenzhen stock exchanges to its S&P Emerging BMI effective Sept. 23, Yicai Global has learned from the New York-based company's public relations office.

Mainland-traded equities will have a 6.2 percent weighting in the index, based on a 25 percent initial inclusion factor. China's entire market, including firms listed in the mainland, Hong Kong and overseas, will have an inclusion factor of 36 percent. The entrants comprise 147 large-cap (USD2 billion-plus) stocks, 251 mid-caps (USD2 billion-USD10 billion) and 701 small-caps (USD250 million-USD2 billion).

Global investors are increasingly seeking out yuan assets as China's capital markets open further, and the global influence of the country's equities is on the rise. MSCI and FTSE Russell have all already embraced Chinese mainland equities, leaving S&P Dow Jones Indices the last of the global index compliers to do so. But it pips its peers in terms of the number of stocks included and the initial inclusion factor.

Two main criteria for inclusion apply: the target company's free float market value must reach USD100 million and its stock must has sufficient liquidity, Craig Lazzara, managing director and global head of index investment strategy for S&P Dow Jones Indices, told Yicai Global in an interview in New York two days before the announcement.

The additions to the S&P Emerging BMI will not encompass shares on Hong Kong's Growth Enterprise Market. Its stocks will only be added after consultations with market participants, S&P Dow Jones Indices said on its website. 

Editors: Tang Shihua, Ben Armour

Follow Yicai Global on
Keywords:   S&P Emerging BMI