Published On: Thu, Jul 17th, 2014

S&P Dow Jones Indices Announces Chinese A-Shares Decision

David Blitzer, Managing Director and Chairman of the Index Committee, S&P Dow Jones Indices -

David Blitzer, Managing Director and Chairman of the Index Committee, S&P Dow Jones Indices –

S&P Dow Jones Indices announced on 14 July the results of its consultation on the investable status of Chinese A-shares. Based on the general consensus expressed by the investment community in the consultation initiated in April 2014, the Index Committee has decided not to include China A-Shares in any S&P Dow Jones Indices’ global benchmarks at this time, including the S&P Global BMI, S&P/IFCI Composite, Dow Jones Global Index, and Dow Jones Global Total Stock Market Index.

Despite significant improvements in accessibility to the A-share market, survey participants highlighted a variety of remaining investability constraints. The issues included the varying and unpredictable quota requirements for systems of the QFII and RQFII, concerns with currency repatriation, and a lack of clarity on the structure of the capital gains tax.

S&P Dow Jones Indices will continue to closely monitor regulatory reforms and engage with the investment community on this matter as needed.

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