(Yicai Global) Feb. 23 -- Shanghai's Star Market is expected to receive USD100 million in passive inflows after FTSE Russell said it will add 50 stocks on the Nasdaq-style board to its indexes, the growth stock board's first global inclusion.
Eligible equitieswill enter the FTSE China A Share indexes and FTSE Global Equity Index Series and as a result, 50 Star Market-listed stocks will be included in the FTSE Global All Cap China A Inclusion Index, the London-basedfinancial institution said in a statement on its website yesterday. The changes will take effect on March 22.
Yicai Global reported on Jan. 26, citing insiders, that FTSE Russell was planning to add the less than two-year-old board's stocks to its indexes in its next semi-annual routine review after such an addition was made possible by the increasingly inclusive Shanghai-Hong Kong Stock Connect.
The move follows "strong client support" shown in a 2020 market consultation, FTSE Russell added.
"This [the inclusion] will mean investors are able to gain access to innovative Chinese science and technology stocks through a range of FTSE China A Share indexes and global benchmarks such as the FTSE Emerging Index,” said Chris Woods, index policy head.
Editor: Emmi Laine, Xiao Yi