Important Influences on China A50
The free-floated adjusted and liquidity-screened China A50 index is reviewed quarterly in March, June, September and December, to ensure that the index remains representative of the Chinese capital markets.
In a matter of just 15 years, China has emerged from a developing economy to being the world’s second largest economic powerhouse. In 2017, the Chinese economy was worth $23.12 trillion. It is the world’s largest producer of aluminium and steel and a primary destination for the manufacture of ICT equipment, like semiconductors and vehicle operating systems.
The China A50 index consists of prominent companies from diverse sectors. Some of the major names on this index include the Agricultural Bank of China, Bank of Beijing, PetroChina and New China Life Insurance.
A key aspect to watch is the performance of the Chinese financial industry, since the banking and financial services stocks account for a significant part of the index. China’s central bank exercises decisive control over the value of the Chinese currency, the Yuan, in respect to other world currencies, despite following a floating exchange rate system.