China launches new blue chip Stock Index
China’s stock exchanges have introduced the CSI A50 index, a new blue-chip equity benchmark aimed at promoting investments in strategically important sectors. Launched on Tuesday, this index focuses on encouraging the development of investment products that prioritise sectors such as renewables and semiconductor manufacturing.
The move comes against the backdrop of the CSI 300 index, representing Shanghai- and Shenzhen-listed stocks, experiencing a decline of over 11% in 2023, primarily attributed to disappointing economic growth in the region.
The CSI A50 index includes major players like Kweichow Moutai, the world’s most valuable liquor listing, battery company Contemporary Amperex Technology Co, chipmaker Semiconductor Manufacturing International Corp, and Jiangsu Hengrui Pharmaceuticals. This initiative reflects China’s strategic intent to bolster key industries and enhance their prominence in the equity market.
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