(Yicai Global) Jan. 26 -- The Global Equity Index Series of London-based securities benchmark provider FTSE Russell, widely applied by investors worldwide, will also include 12 individual shares in the Shanghai Stock Exchange’s Star Market in its next semi-annual routine review of indices.

International investors will thus be able to directly inject capital into the Hong Kong Stock Exchange via these individual stocks after their inclusion.

FTSE Russell will announce the results of the semi-annual index review on Feb. 19, an insider said in response to a question by Yicai Global yesterday. All qualified shares listed on Shanghai’s Star Market that meet standards for induction will be included in the GEIS, with the updated indexes to take effect at market opening on March 22, the source added.

FTSE Russell made its statement in response to the latest policy adjustments to measures for implementing the Shanghai-Hong Kong Stock Connect that the Shanghai Stock Exchange released on Jan. 22.

These amendments for the first time specify that the institutional investors using the connect in Hong Kong can trade stocks on the Start Market that meet certain criteria to afford global investors the chance to trade Star-listed shares in Hong Kong.

Measuring Up

Only 12 Star stocks listed are up to snuff, the Hong Kong bourse said, adding all qualifiers will be added to the trading mechanism of the Shanghai-Hong Kong Stock Connect from Feb. 1.

These eligible 12 individual stocks are Advanced Micro-Fabrication Equipment Inc. China, Hangke Tech, China Railway Signal & Communication Corp. in the mechanical equipment sector, Yantai Raytron Technology, Montage Technology and Anji Microelectronic Technology Shanghai and Western Superconducting Technologies in the non-ferrous metal industry, as well as Haier Biomedical, Haohai Biological Technology, Shanghai Fudan Zhangjiang Biomedical, Junshi Biosciences and CanSino Biologics in the biomedical and pharma sector.

Earlier additions of individual stocks to the including MSCI and GEIS global indices spurred foreign buying of shares listed on Chinese mainland bourses, so this latest round of inclusion should pique investors’ interest.

The Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect programs allow investors in Hong Kong and on the mainland to trade certain qualified stocks, regardless of where the companies went public, through local securities firms.

Editors: Tang Shihua, Ben Armour