Index provider FTSE Russell says it will keep developing products for Chinese assets

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‘We believe China remains a key market for international investors due to its size and growth potential,’ CEO says

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People crossed a road in Beijing’s business district. Photo: AFP

Yuke Xiein Beijing

Published: 8:30am, 25 Oct 2024Updated: 9:14am, 25 Oct 2024

FTSE Russell, the world’s third-largest index provider, will continue developing products for Chinese assets as global interest in the market grows and retail investment culture worldwide shifts, according to the company’s global CEO.

Despite recent challenges from macroeconomic headwinds, geopolitical tensions and volatility, global investors still believe China’s financial markets are being propelled by strong momentum, according to Fiona Bassett.

“We believe China remains a key market for international investors due to its size and growth potential, and as an index provider, we see our role in helping clients access those markets,” Bassett said in an interview with the Post.

The company, which is owned by the London Stock Exchange Group, last year celebrated its 20th anniversary in China with the FTSE China A50 index, which tracks the 50 largest companies listed on mainland exchanges.

“It’s been very impressive to see the evolution of China’s capital markets over the last 20 years,” Bassett said. “Obviously, the market is very dynamic, and we welcome the stimulus packages that have been announced to the market.”

Bassett’s comments come after Chinese authorities unveiled a series of measures last month to support financial markets, the ailing property sector and overall economy. The stimulus measures included cuts to policy rates, mortgage rates, and facilities to support stock buying by financial institutions.

The moves fuelled a US$4.5 trillion stock market rally in Shanghai, Shenzhen, Hong Kong and New York over the past month, despite concerns from analysts about Beijing’s policy credibility and China’s long-term structural challenges, including local government debt, an ageing population and geopolitical tensions with the West.