FTSE Group (“FTSE”), the global index provider, and Value Partners Index Services Limited (“Value Partners”), a wholly owned subsidiary of Value Partners Group, today announce the launch of the FTSE Value-Stocks China Index. This new China equity index adopts Value Partners’ unique value-based methodology and is calculated and maintained by FTSE as a custom index solution.
The new FTSE Value-Stocks China Index captures the performance of 25 quality value stocks amongst liquid and tradable Chinese companies listed on the Stock Exchange of Hong Kong (“SEHK”) including H-shares, Red chips and P chips. The index enables access to the China market through a unique, transparent and rules-based value strategy and is designed to be used as the basis for Exchange Traded Funds (“ETFs”) and derivatives.
Cheah Cheng Hye, Value Partners Group’s Chairman and Chief Investment Officer said “Value Partners has been a pioneer in applying value-investing to the Asia-Pacific region, with a focus on Greater China. Here, what we are doing is to introduce an index for an investor who wishes to buy a basket of what Value Partners thinks is the best value-stocks available. This basket is selected from all the China-related stocks listed in Hong Kong. It's an index designed for investors who wish to focus on value-stocks.”
Jamie Perrett, Head of Quantitative Research, Asia for FTSE Group, added “Investors have a new way to access the China market via a value-based index strategy that combines FTSE’s globally recognised index expertise and Value Partners’ proven track record in disciplined value investing. This unique custom index demonstrates FTSE’s flexibility to build specialised indices that offer investors unique opportunities to capture the China market.
Eugene Law, Deputy CEO of Value Partners Group, said “Constituents of the FTSE Value-Stocks China Index must pass a proprietary value screening process which includes valuation, quality, and contrarian criteria. The index’s unique value-based methodology addresses key issues facing true value investors, such as avoiding value traps, focusing on quality and excluding stocks with consensus analyst “buy” calls which have notoriously lagged behind market movements.”