S&P Dow Jones Indices has launched an index designed to help investors gain better risk-adjusted exposure to China’s A-shares market by reducing holdings in companies with the highest sensitivity to index movements, or beta.
The S&P Global Intrinsic Value Index (GIVI) China A-Share will exclude 30% of the A-share market measured by capitalistation that belongs to companies with the highest beta.
Additionally, the index is weighted by its calculated intrinsic value rather than market-capitalisation.
These two factors are in line with the methodology used by the broader base S&P GIVI. In turn, the GIVI is constructed from the S&P Global Broad Market Index.
Chinese A shares are those listed on the mainland and only accessible by certain investors.
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