Scientific Beta

IPE: "A leading smart beta index provider has opted not to add China A-shares to its benchmarks, despite recent high profile moves by MSCI and FTSE Russell. ERI Scientific Beta cited restrictions to the use of derivatives, limited capacity for rebalancing and the high number of stock-trading suspensions as reasons why it had decided against adding access to the burgeoning onshore market for Chinese equity."

IPE 11/10/2018

"(...) A leading smart beta index provider has opted not to add China A-shares to its benchmarks, despite recent high profile moves by MSCI and FTSE Russell. ERI Scientific Beta cited restrictions to the use of derivatives, limited capacity for rebalancing and the high number of stock-trading suspensions as reasons why it had decided against adding access to the burgeoning onshore market for Chinese equity. Instead, the provider said it had created a "dedicated and independent" group of 100 constituents representative of the Chinese equity market to use in its indices. (...)"

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