Email of the day on differences between the performance of the FTSE A50 Index and the Shanghai A-Shares Index.
Comment of the Day

March 08 2019

Commentary by Eoin Treacy

Email of the day on differences between the performance of the FTSE A50 Index and the Shanghai A-Shares Index.

Would you care to comment on the different behaviour of the China A-50 future and the A-Share indices themselves?  It has been ironic, and frustrating, that while you and all the media talk of surging A-Share prices, the A-50 future, which is the one one can actually trade, has come down very sharply in the last few days.

Eoin Treacy's view

Thank you for this email which highlights an interesting development. The FTSE-50 is much more concentrated that the Shanghai A-Shares Index which has 1453 members. In fact, its largest constituent, Ping An Insurance, occupies 12.31% of the Index. That is the largest weighting for an insurer in any of the China focused indices and ensures the Index does not track the performance of the mainland market as closely as one might like.

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