J.P. Morgan to Release Yangtze Delta Strategic Beta Index Next Month
Zhang Yuanke
DATE:  May 21 2019
/ SOURCE:  yicai
J.P. Morgan to Release Yangtze Delta Strategic Beta Index Next Month J.P. Morgan to Release Yangtze Delta Strategic Beta Index Next Month

(Yicai Global) May 20 -- J.P. Morgan Asset Management and Shanghai-based bond valuation data and services provider China Securities Index will introduce an index for high-quality listed companies in the Yangtze River Delta region next month to provide global investors with more opportunities to access the Chinese mainland market, the two jointly announced today.

The new CSI J.P. Morgan Yangtze River Delta Area Strategic Beta Index that will officially issue on June 10 will be compiled based on New York-based J.P. Morgan's specific Smart Beta multi-factor framework, which is applied to about USD3.5 billion of assets worldwide.

The index will crunch the numbers on over 1,200 listed firms registered in Shanghai and in its surrounding provinces of Jiangsu, Zhejiang and Anhui as samples to be selected, score them based on their valuation, profitability and profit quality, and finally select 150 companies with an ideal valuation, quality and liquidity, J.P. Morgan told Yicai Global.

The Yangtze River Delta region had 220 million permanent residents and a regional gross domestic product of CNY19.5 trillion (USD2.8 trillion) in 2016, making up 16 percent and 24 percent of the national totals of these, respectively, per annual statistics. The region had more than 1,200 companies listed on the Chinese mainland stock market as of the end of last year, making up 34 percent of the mainland total. 

J.P. Morgan Asset Management's holdings reached USD1.7 trillion by the end of March this year. Investors are seeking more efficient access to the Chinese mainland market as the country's capital market further opens up and world's flagship indexes boost the weight of Chinese stocks, said Philippe El-Asmar, Head of the financial heavyweight's Asia Beta Strategies. 

Editor: Ben Armour

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Keywords:   J.P. Morgan,Yangtze River Delta,CSI