FTSE China Index A50, also known as Xinhua FTSE A50 Index, the English name is “FTSE China A50 Index”, sometimes referred to as FTSE A50. The index was founded by the FTSE Group on December 13, 2003. It is an important stock price index that measures the Chinese stock market, especially the A-share market (common stocks registered and listed in mainland China and traded in RMB). The FTSE A50 is composed of the stocks of the top 50 companies with the largest market capitalization listed on the Shanghai and Shenzhen stock exchanges in China, with a total of 50 constituent stocks.

The FTSE China Index A50 is a market-value-weighted index , so the larger the company’s market value, the greater the overall influence of the stock index when stock prices fluctuate. Since the market value of banks and insurance companies accounted for more than half of the total market value of the index, the volatility of the financial industry has a great impact on the FTSE A50 index, and investors need to pay more attention to this.

The FTSE Group will conduct a quarterly review of the index in March, June, September and December each year to ensure that it can better represent the Chinese stock market. In order to maintain the relative stability of the FTSE A50 Index, when the ranking of non-component stocks rises to 40 and below, the corresponding stocks will be included, and the lowest-ranked component stocks will be removed. Conversely, when the ranking of constituent stocks drops to 61 and beyond, the corresponding stocks will be removed, and the non-constituent stocks with the highest ranking will be included.

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