Scientific Beta

Money Management: "Smart beta index provider, Scientific Beta has confirmed that China’s A-shares are not eligible for its indices, even though the Chinese authorities have made some progress on important aspects, as there are still a number of accessibility issues which pose potential liquidity risks. According to the company, some decisions of Chinese authorities remained unfavourable for foreign investors and could create the situations in which investors would be penalised."

Money Management 05/04/2019

"(...) Smart beta index provider, Scientific Beta has confirmed that China’s A-shares are not eligible for its indices, even though the Chinese authorities have made some progress on important aspects, as there are still a number of accessibility issues which pose potential liquidity risks. According to the company, some decisions of Chinese authorities remained unfavourable for foreign investors and could create the situations in which investors would be penalised. These decisions were: Chinese authorities could lock up foreign investors’ money in the case of extreme moves; Limited domestic availability of derivative instruments, in particular index futures, access to which was restricted to approved foreign institutional investors and remained limited in scope; and Foreign-ownership restrictions on China A-shares, set at 30 per cent, could become critical with future inflows. (...)"