Exchanges Volatility: Percent and Ftse Russell

exchanges volatility: On Monday, the Shanghai Composite Index was up 1.38 percent to 2,892.38 points, while the Shenzhen Component Index rose by 2.31 percent to 8,979.83 points, according to Global Times China. According to FTSE Russell, in this stage, 1,097 Chinese stocks, or roughly 20 percent of A shares, will be included in the indexes, drawing an expected 10 billion from passive investors. A move like this, and the incremental capital that will flow in as a result, will reduce the exchanges' volatility, which is caused by shortage of long-term funds, one expert said. FTSE Russell will add 40 percent of A shares to its indexes in September and another 40 percent in March next year. The move followed a decision in March to increase the inclusion factor of A-shares to 20 percent in a three-step process in May, August and November, each time raising the representation of Chinese large-cap stocks by five percentage points. Recently, MSCI announced a decision to double the inclusion factor of A shares in the MSCI indexes to 10 percent. (news.financializer.com). As reported in the news.