On Sep 9, S&P Dow Jones Indices (S&P DJI), the world’s largest provider of financial market indices, officially announced its list of Chinese A-share companies that it decided to include in its indices. Being one of these companies, Guomai was included in the S&P Emerging BMI index. The inclusion is yet another validation of the international market’s recognition of Guomai after the company’s inclusion into FTSE Global Equity Index Series in May.
According to the latest news, A shares will be included into S&P DJI with a 25% inclusion factor. China’s A shares are estimated to account for 6.2% of the S&P Emerging BMI.
The inclusion of A shares into S&P DJI will bring large amounts of incremental capital after Sep 23. On the same day, as expected, FTSE Russell changed its inclusion factor from 5% to 15% for Chines A shares. The advent of international indices in China represents the recognition of the value of investing in A shares and the confidence of foreign funds in China’s A-share market.
Guomai’s inclusion into the S&P Emerging BMI is another milestone after being included in FTSE Russell, showing foreign capitals’ acknowledgement of Guomai’s performance in sales growth, corporate governance and development potentials. The company will continue to focus on 5G and Internet of Things (IoT) by expanding its 5G network design business and carrying out the implementation of IoT application scenarios. As the A-share market goes global, the company will follow China’s efforts in reforming domestic capital market to keep pace with the international capital market, therefore enhancing its international influence.
What is S&P Dow Jones Indices?
S&P Dow Jones Indices is the world’s largest information provider whose information is based on the concept of indices, data, and research. It created the symbolic S&P 500 and the Dow Jones Industrial Average (DJIA) for the financial market. Global direct investment in the S&P Dow Jones Indices has a higher total asset value than other index providers.