New ESG index series for the Chinese market

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© Sean Lim

FTSE Russell, a leading global index, data, and analytics provider, and Ping An, a leading technology-powered retail financial services group, today jointly announce the launch of the FTSE Ping An China ESG Index Series as a part of a new strategic partnership. The Index Series combines the expertise of both organisations, enabling domestic and offshore investors to better integrate sophisticated sustainability considerations into their investment approach in China.

The launch comes as Environmental, Social and Governance (ESG) issues are front of mind for investors globally and aims to provide them with access to opportunities and orient funds towards companies with strong ESG performance in China’s capital markets.

Combining Ping An’s proprietary China ESG data and ratings into FTSE Russell’s leading China indices, the FTSE Ping An China ESG Index Series represents a meaningful expansion of the FTSE Russell China equity index offering. The index series has a China-specific ESG approach tailored to China’s development trajectory and its social and environmental circumstances.

Using the Ping An CN-ESG framework covering 4,000 China A-shares for an overall rating, scores are translated into index weightings. In the case of the FTSE Ping An China A Free ESG Advanced 50 Index the top five companies are ranked by ESG Rating from 10 industries and weighted by market capitalisation. Similarly, the FTSE Ping An China A Free ESG Advanced 100 Index selects the top ten companies ranked by ESG Rating from 10 industries and weighted by market capitalisation. The indices will be reviewed semi-annually in March and September.

Key index highlights:

China-specific ESG rating – China-specific ESG approach that best suits the country’s unique development trajectory and its policy-led social and environmental circumstances

Assesses China ESG opportunity and risk – Ping An CN-ESG Rating provides unique insights into policy-driven green thematic opportunities in the environmental and green industry space and material social and governance understanding perspectives

Comprehensive and representative benchmarks – Based on the FTSE China A Free Index, which is a comprehensive and representative benchmark of the China A-Shares market, incorporating large and mid-cap stocks listed on the Shanghai and Shenzhen Stock Exchange’s including the STAR and ChiNext Board

No foreign ownership limits – FTSE China A Free Indices do not apply foreign ownership limits, and therefore accurately reflect the Chinese market for domestic investors

Arne Staal, Chief Executive Officer FTSE Russell, and Group Head of Benchmarks and Indices at LSEG said: “We are delighted to partner with Ping An and build on our position as the first international provider of mainland Chinese benchmarks. The launch of the FTSE Ping An China ESG Index Series combines our complementary expertise in sustainable investing specially for the Chinese market. This partnership affirms FTSE Russell’s commitment to this market and we look forward to working closely with Ping An to advance the expansion of sustainable investing in China, which is one of the world’s most dynamic and strategically important capital markets.”

Eugene Huang, Chairman & CEO, Ping An Technology said: “Our partnership with FTSE Russell will enable us to provide more choice to customers looking for greater flexibility and efficiency in their China investment mandate. Leveraging both organisations’ core strengths in the China market, we hope to produce China centric products which are appropriate for China’s stage of development. Working together with FTSE Russell, we expect to help fill a gap in the market and facilitate the growth in China’s ESG investment.”

More information on the new China benchmarks

 

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