JPMAM and CSI to launch A-shares strategic beta index

Yangtze RiverJP Morgan Asset Management (JPMAM) and the China Securities Index (CSI) have formed a partnership to launch a China A-shares strategic beta index, JPMAM, which manages $1.7 trillion in assets, revealed on May 20, 2019. The CSI JPMorgan Yangtze River Delta Area Strategic Beta Index will be available from June 10, 2019 and is looking to take advantage of regions publicly listed A-share companies. The sprawling Yangtze River Delta (YRD) region includes vast cities like Shanghai, Nanjing, Hangzhou and two free trade areas. By the end of last year, the area accounted for more than 34% of listed companies in China. “From the 1,200 listed YRD equities, the CSI-JPM YRD Strategic Beta Index will include approximately 150 equities that rank well on a multi-factor screening process and exhibit attractive valuation and quality attributes while maintaining a good liquidity profile,” JPMAM said in a statement. “The index will leverage JP Morgan’s proprietary multi-factor strategic beta framework, which is already deployed on approximately $3.5 billion in assets globally,” JPMAM added. China continues to open its financial sector to foreign investors and embed itself ever-deeper into the global economy, giving global investors new ways to tap into the Asian market, as well as the diversification benefit of consistently lower correlations in Chinese equity versus developed markets. “With expanding market liberalization and greater flagship index inclusion, investors are seeking more efficient and effective ways to access this market,” said Philippe El-Asmar, head of beta strategies for Asia Pacific, said. ©2019 funds global asia

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