FTSE sees growth in passive China investment

ChopsticksThere is now more than $10 billion (€7.6 billion) invested in exchange-traded funds (ETFs) that track FTSE’s China A50 Index, says the index provider, quoting Bloomberg data.

The index includes the 50 largest Chinese A share companies and strikes a balance between representing the Chinese stock market and tracking stocks that are reliably tradable, claims the firm.

In all, FTSE says 58% of assets in China-themed ETFs are in products benchmarked to its indices, this time quoting BlackRock data.

FTSE currently offers 23 China indices, which track A, B and H shares, including two for Hong Kong. The FTSE China A50 Index and the FTSE China 25 Index are the most popular.

The performance of the FTSE China A50 index has been mixed in recent months. Since the beginning of December, it has risen by 20%, but this came after a seven-month decline. The index is now close to reaching its 2012 peak, recorded in early May.

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