S&P Dow Jones to Bet on Chinese Rice Wine, Banks via Emerging Markets Index
Zhou Ailin
/SOURCE : yicai
S&P Dow Jones to Bet on Chinese Rice Wine, Banks via Emerging Markets Index

(Yicai Global) Jan. 2 -- New York-based stock benchmark provider S&P Dow Jones Indices has announced the names of 50 Chinese firms, including state-owned banks, insurers and large consumer goods firms, that will be included with the highest weighting in its Dow Jones Emerging Markets Index on Sept. 23.

Some 19 out of 50 firms, or 38 percent, are in the financial sector, including Ping An Insurance [SH:601318][HK:02318], China Merchants Bank [SH:601398], Agricultural Bank of China [SH:601288][HK:01288], Industrial And Commercial Bank of China [HK:01398] and Industrial Bank [SH:601166], Yicai Global's sister publication Yicai reported on Dec. 31. The US financial firm will include 1,241 Chinese mainland-listed stocks, also known as A-shares, in the benchmark, it announced on Dec. 31. 

Kweichow Maotai [SH:600519], a high-end baijiu distiller, had the highest weighting on the list with its 0.0147 percent. Ping An Insurance came second with its 0.0142 percent. China Merchants Bank ranked third with 0.0122 percent. Carmaker SAIC Motor [SH:600104] and appliance maker Midea Group [SHE: 000333] will also be added. 

Financial and consumer categories are the focus of foreign capital in the long-term, said Guo Yiming, a director at Jufeng investment.

S&P Dow Jones Indices chose stocks which qualify to trade in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect and will calculate these shares based on 25 percent of their market value upon inclusion, Shanghai Securities News reported on Dec. 6. 

The S&P Dow Jones will be the third index to incorporate A-shares. New York-headquartered MSCI has already included them into the MSCI Emerging Markets Index and the MSCI All Country World Index since June. 

London's FTSE International Limited, trading as FTSE Russell FTSE Group, will also embed A-shares in its global stock index system as secondary emerging markets from next June, the company said in an earlier statement.

Editor: Emmi Laine 

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Keywords: S&P , Dow Jones Industrial Average