FTSE China A50 Index

Launched in 2003, the FTSE China A50 Index tracks the 50 largest A-share companies listed on the Shanghai and Shenzhen stock exchanges. These constituents are incorporated in mainland China and represent the most liquid and prominent segments of the domestic equity market.

The index is specifically designed for use in index-linked investment products such as ETFs, derivatives, and as a benchmark for performance measurement. To ensure accessibility for international investors, all constituents must comply with foreign ownership restrictions and be eligible for trading via the Northbound Stock Connect programme.

Reflecting the broader China A-share market, the FTSE China A50 Index is highly correlated with the overall market and accounts for over one-third of its total market capitalization (based on full market cap), making it a key barometer of China’s economic and equity market performance.

Comprised of the largest 50 A-share companies, the FTSE China A50 Index is one of the mostrecognized China A Share market indices in the international investor community.Since its launch, the FTSE China A50 indexhas evolved alongside with market development.The index constituents are subjectto foreign ownership limitsand Northbound Stock Connect trading eligibility.Together with sanctioned stock treatmentthe index is carefully designed to enhanceinvestability among international investors.Despite the methodology evolution,one aspect stays intact --- its simplicity.The FTSE China A50 Index continuesto follow a simple, transparent,well-understood, free float market capadjusted construction methodology,a gold standard for indiceswith a modest number of constituents,which results in a highly predictable composition.Meanwhile, while the 50 constituentsin the index representless than 1% of today's A Shares market by stock count,they represent a third of themarket on a full market capitalization basis.This means the FTSE China A50 Index matterswhen it comes to market relevancy.In fact, because these are some of the largestand most important companies in China, the index composition evolves alongside with China's policy.For example, exposure in companies that contribute to carbon reduction has increased substantially since China announcedits march towards carbon neutrality in 2020.FTSE China A50 Index’s simplicity and relevancy nature has propelled the index to becomingone of the most popularChina A Share index choice among ETF issuers globally.Today, the index is tracked by nearly$5 billion in assetsacross multiple ETFs domiciled outside of China.Together with the hugely fluid futuresassociated with the index,the established ecosystem is precisely what makesthe FTSE China A50 Indexso attractive for today's investors globally.