On May 25th, FTSE Russell, the world's second largest index preparation company, announced that it will officially include China's A-shares into its flagship index FTSE Global Equity Index Series from June 2019 onwards. The first batch has an inclusion factor of 5%. Most of the A-shares included are market-leading stocks or high-growth stocks. Guomai Technology has won the list and became the first batch of listed companies to enter the foreign stock allocation pool.
According to the plan announced by FTSE Russell, the first step of incorporating A-shares will be carried out in three batches, which will be completed in June 2019, September 2019 and March 2020, and the inclusion factor will be 5 % for the first batch and increased to 25% for the final. From the perspective of the proportion of the inclusion, after the first step of the A-share entering the Index, the A-share will account for 5.57% of the FTSE Russell emerging market, bringing in a net passive capital inflow of US$10 billion.
Guomai Technology being included on FTSE Russell Global Equity Index Series means that as a listed A-share company, key indicators such as the size, liquidity and transaction stability of the company's stock have been fully recognized by the world's leading index companies. The company will also have the opportunity to gain high attention from the global capital market and attract more high-quality long-term international capital strategy holdings, which is of great significance for improving the company's shareholding structure, reflecting corporate value, and stabilizing market valuation. Guomai Technology will also take this opportunity to focus on resources to accelerate the layout and the expansion of 5G and IoT-related core businesses, create high-quality listed technology companies, and share corporate growth dividends with global investors.
What is the FTSE Russell Global Equity Index?
The FTSE GEIS is one of the core products of the FTSE Russell Index, which includes more than 7,400 shares in 46 countries. According to different market positions, it is divided into three levels: developed, advanced emerging and sub-emerging markets. The core index related to China A-shares is the FTSE Emerging Index. At the end of 2018, the FTSE Russell Global Index product has attracted more than $1.5 trillion in global funding.