The MarketGrader China A-Shares Exchange Indexes: Tools for Strategic & Tactical Asset Allocation – Part 1

MarketGrader recently announced an expansion of its family of Mainland China indexes by launching 12 new indexes.1 As part of this launch, MarketGrader introduced two exchange-specific indexes covering the investment opportunity available in the A-shares equity markets of the Shanghai and Shenzhen stock exchanges. The indexes are named the MarketGrader Shanghai 80 Index (MG Shanghai 80) and the MarketGrader Shenzhen 80 Index (MG Shenzhen 80). The indexes are designed to satisfy two key objectives. First, the indexes provide investors long-term strategic tools to participate in the exchange-specific capital appreciation opportunities inherent in the mainland exchanges. Second, the indexes give investors the ability to act on their beliefs regarding the relative performance of the largest China ex- changes and empowers them to tactically shift the relative exposures of their portfolios to the Shanghai and Shenzhen stock exchanges.