On June 21, the launch ceremony for the China A-shares inclusion in the FTSE Russell’s Global Equity Index Series (GEIS) is successfully held at the Shenzhen Stock Exchange (SZSE), where FTSE Russell announces that it will include the A-shares in its GEIS and the inclusion will take effect at the market opening on June 24, 2019. Following the MSCI, the internationally renowned index provider FTSE Russell will also officially include the A shares in its index system, which marks another major breakthrough in the high-level two-way opening up of China's capital market.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), expresses his congratulations in a written speech. Attending and addressing the ceremony are FTSE Russell's CEO Waqas Samad, Liu Shaotong, vice president of the Shanghai Stock Exchange (SSE), and Wang Hong, vice president of the SZSE. Also delivering speeches at the ceremony are the representatives of the overseas investment institutions and the SZSE-listed companies. Jointly witnessing the symbolic moment of China’s capital market opening wider to the outside world are the representatives of nearly 70 institutions including the SSE, the SZSE, Shenzhen Central Branch of the People's Bank of China, the London Stock Exchange, FTSE Russell, as well as fund, securities and listed companies at home and abroad.
Fang Xinghai adds that in recent years, according to the requirements of the Party Central Committee and the State Council, the reform and opening up of China's capital market have been advanced in a rapid and steady manner, with a series of measures for opening up the financial services industry and the market successively implemented, and the investment environment and ecology of the capital market continuously improved. As an important milestone in the internationalization of China's capital market, the successful inclusion of A-shares into the FTSE Russell’s GEIS fully demonstrates that the international investment community is supportive and confident in the bright prospects of China's long-term economic development and the reform and opening up of the capital market, and will inject positive energy into the healthy development of China's capital market. The CSRC will, in accordance with the central authorities’ major decisions and arrangements for strengthening the financial supply-side structural reform, adhere to the orientation toward market, rule of law and internationalization, promote reforms and development through opening up, step up the implementation of the nine measures for further expanding the capital market's opening to the outside world, facilitate the access of the long-term overseas funds to China’s capital market, strengthen regulation and cross-border cooperation, and continue to boost the reform and opening up of China's capital market.
Waqas Samad says that the official inclusion of China's A-shares in the FTSE Russell’s GEIS is an important mark of the development and opening up of China's stock market. With the continuous efforts of the Chinese regulatory authorities and market institutions, China's A-share market has continued to grow and develop, with the issuance and listing system constantly improved, the transparency of information disclosure gradually enhanced, and the international investment channels increasingly enriched. FTSE Russell will continue to provide index benchmarks and innovative analytics solutions, so as to better meet the demands of the investors worldwide and boost the investments in the stocks and bonds in China.
Liu Shaotong says that with the continuous opening up of China's capital market, overseas investors have become an important force in the A-share market. The SSE will seize the development opportunities, improve the capacity for serving the sci-tech innovative enterprises, enhance the market inclusiveness, strengthen the market functions, and help overseas investors better understand and participate in China’s capital market. With the inclusion of the A-shares into the “MSCI” and the “FTSE Russell’s GEIS”, the introduction of the Shanghai-London Stock Connect, and the SSE-JPX ETF Connectivity Scheme soon to be launched, it is expected that more overseas investors, especially long-term investors, will get involved in China’s capital market.
Wang Hong says that the inclusion of A-shares in the FTSE Russell’s GEIS is conducive to enhancing the influence of and the attention to China’s listed companies. The SZSE will focus on improving the quality of listed companies, earnestly fulfill the frontline supervisory responsibilities, maintain the fair market trading order, deepen the market interconnection mechanisms, give full play to the functions and advantages of the market, technology, service and location, and provide a favorable environment for the investors worldwide to participate in China’s capital market.
At the launch ceremony, the representatives of overseas investment institutions and listed companies point out that the inclusion of A-shares in the FTSE Russell’s GEIS will greatly strengthen the confidence of the investors at home and abroad and improve the internationalization and capacity for corporate governance of China's capital market.
Following the MSCI, FTSE Russell is the second major stock index provider in the world to include China A-shares in its index system. The inclusion of A-shares in the FTSE Russell’s GEIS is another important achievement in the opening up of China's capital market. In the future, with the unified deployment and leadership of the CSRC, the SSE will continue to accelerate the pace of international development, constantly improve the market system, make efforts to introduce the long-term overseas funds into the domestic market, and enhance the two-way opening of China's capital market.