BEIJING, Jan 18 (Reuters) - Index provider FTSE Russell said on Wednesday it will expand its China services with the launch of two new indexes, reflecting growing interest in Chinese firms as the government opens markets to global investors.
The FTSE China A Innovative Enterprise Indexes will provide a benchmark for ChiNext Stocks, which have grown since late 2009 to a market capitalisation of $752 billion, making up nearly a quarter of the Shenzhen Stock Exchange, FTSE Russell said.
The ChiNext Board was created by the Shenzhen Stock Exchange to allow listings of China’s smaller, entrepreneurial companies, such as high-tech firms.
FTSE Russell will also incorporate ChiNext stocks into the FTSE Global China A Inclusion indexes in the first quarter of this year, it said. ChiNext stocks will likely make up 9 percent of the FTSE China A All Cap Index investable market capitalisation.
The inclusion “reflects the rapid growth of the ChiNext market and further enhances the representativeness of our China benchmarks,” Jessie Pak, Managing Director of Asia at FTSE Russell, said in the statement.
Separately, the new FTSE China A Stock Connect Indexes will track eligible mainland A-shares available to trade through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programmes, FTSE Russell said in a media release. (Reporting By Shu Zhang and Matthew Miller; Editing by Sonali Paul)