Trade the FTSE China A50!
FTSE CHINA A50

Analysis of the FTSE China A50 stock index price

Trade the FTSE China A50!
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With the advent of China among the world's major economic powers, more and more investors are interested in trading Chinese stocks and, as such, the main Chinese stock index. We'll be providing you with details about this benchmark index by first presenting the Chinese stock exchange and its activity, its stock market index the FTSE China A50 and other stock market indices of this financial centre as well as the composition of the index with the securities listed therein.  

Elements to consider before investing in this asset

Analysis N°1

Data on the Chinese economy is in the forefront with the trade balance, GDP and retail sales.

Analysis N°2

You'll need to follow the news of the companies indexed in this stock market index according to their share in its calculation and therefore to their market capitalization.

Analysis N°3

China's economic policy and the country's relations with other countries around the world will also play an important role.

Analysis N°4

Finally, you'll need to monitor the Yen exchange rate against other currencies in the foreign exchange market because of the impact it can have on the country's competitiveness.

Analysis of the FTSE China A50 stock index price
Trade the FTSE China A50!
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Trade the FTSE China A50!

The Chinese stock market and its history:

First, let's go back to the Chinese stock market and its history in order to better understand how the FTSE China A 50 index works.

The Chinese stock exchange is the Shanghai Stock Exchange, also known by the acronym SSE. The stock exchange was created in 1990 in Shanghai and is still located in the business district of Lujiazui in Pudong today.

Among the important dates to know, there's the year 2012 during which the Shanghai Stock Exchange became the most important stock exchange in the People's Republic of China, exceeding the stock exchanges in Hong Kong and Shenzhen. This stock market also became the sixth largest financial centre in the world in terms of market capitalization.

This stock exchange had already seen the light of day in 1891 before being closed in 1949 following the establishment of the People's Republic of the country.

Nowadays, since its reopening in 1990, the stock exchange is being run by an agency of the State Council of the People's Republic of China.

In 2006, the stock exchange listed the shares of 842 Chinese companies with a market capitalization which then reached 915 billion US dollars. But since 2006, the stock market grew by 130%, then by 97% in 2007 thanks to the strong dynamism of the country's economy which then attracted many investors from around the world. In 2007, the SSE Composite then posted an exchange rate of 6,124 points.

Of course, like all financial centres in the world, the Chinese stock market suffered a lot during the 2008 financial crisis and lost 65.5% of its value with a final listing at 1,820 points, which represented a loss of 3,000 billion capitalization dollars. At the end of that pivotal year, 120 million A-share accounts are active and a tiny part of the capital of the companies listed there remains open to the public, which leads to an amplification of price movements.

The Shanghai stock market also benefited, like other Asian stock markets, from a massive influx of foreign capital in the early 1990s. This capital then withdrew, which greatly destabilized the country's currency and then its economy. This led China to end the fixed exchange rate system.

 

What is the FTSE China 50 index?

Let's move on to the topic of interest, the FTSE China A50 stock index. This stock market index, also known as Xinhua China A50, is a stock market index of the FTSE group. Until 2010, it was also a FTSE-Xinhua joint venture.

The companies that make up this stock market index are selected from the financial centres of Shanghai and Shenzhen which issue A shares, B shares for foreigners being excluded.

As its name suggests, this index tends to reflect Chinese economic activity by grouping together the 50 companies in the country with the highest market capitalization.

 

What's the composition of the Chinese FTSE China A 50 stock market index?

To go a little further, here's the list of the 50 stocks that make the FTSE China A50 stock market index as well as their sector of activity:

 

Other Chinese stock market indices to know:

If you're interested in the Chinese market and want to invest your capital, you should also know the SSE Composite Index which is the stock market index of the financial centre of Shanghai.

The CSI 300 index is the stock market index of the Shanghai stock exchange made up of the 300 largest stock market capitalisations in the country.

Still among the main Chinese indices, the Dow Jones China 88 Index which is managed by S&P Dow Jones Indices.

Although the FTSE China A50 corresponds to the Shanghai stock market, the SESE 100 index takes up the first 100 market capitalizations of the financial centre of Shenzhen.

Frequently Asked Questions

Can we trade FTSE China A50 index shares?

Some online trading platforms give you access to the listing of some Chinese stocks listed on the FTSE China A50, but these securities remain relatively inaccessible to European investors. You can also invest directly in the pricing of the Chinese stock index thanks to the CFDs of certain platforms by trading on its rise or drop according to your strategy and prior analyses.

How to follow the evolution of the FTSE China A50 index price?

If the trading platform on which you invest includes Chinese stocks, you have the possibility to follow the evolution of the index price directly with live charts and in real time. Otherwise, various specialized websites offer the possibility of following the development of the price of this benchmark index with similar charts. On some charts, you can even perform technical analyses.

What are the other major international stock market indices of interest?

In addition to the FTSE China A50, you can invest in many other international stock indices. This is of course the case for European stock market indices such as the CAC 40, the DAX30 or the FTSE, along with American stock market indices such as the Dow Jones, the S&P 500 and even the NASDAQ 100. The choice among online brokers is wide enough to invest in securities around the world.

Trade the FTSE China A50!

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