In partnership with J.P. Morgan Asset Management, China Securities Index (CSI) is going to launch a dedicated China A-Shares strategic beta index. The CSI JPMorgan Yangtze River Delta Area (CSI-JPM YRD) Strategic Beta Index will be published effective on June 10 2019.
The CSI-JPM YRD Strategic Beta Index will seek to capitalize on a particularly dynamic region connected with China A-Shares. As of 2016, the Yangtze River Delta Region had a permanent population of 220 million and a GDP of 19.5 trillion yuan (US$2.82 trillion), representing 16% of China’s population and 24% of China’s GDP. By the end of 2018, it had over 1,200 publicly-listed A-share companies, representing 34% of China’s listed companies. The region is home to major cities such as Shanghai, Nanjing and Hangzhou as well as two free trade zones.
The index will leverage J.P. Morgan’s proprietary multi-factor strategic beta framework, which is already deployed on around US$3.5 billion in assets globally.
“China A-shares are a deep and liquid market with low correlation to other equities markets. They are rapidly becoming a more integral part of global investor portfolios. With expanding market liberalization and greater flagship index inclusion, investors are seeking more efficient and effective ways to access this market,” says Philippe El-Asmar, Asia Pacific head of beta strategies, J.P. Morgan Asset Management.