FTSE Russell, the index specialist owned by the London Stock Exchange, has created a new benchmark covering both A-shares, listed on the Shanghai exchange and H-shares listed on the Hong Kong exchange.

Dubbed the FTSE China A-H 50, Deutsche Bank and stock marker operator Deutsche Börse have already licensed the index to use as a benchmark for ETFs.

Deutsche Börse, which is planning to merge with the LSE, said it launched the db x-trackers Harvest FTSE China A-H 50 Index on Wednesday. 

The term H-shares relates to share of a company incorporated in the Chinese mainland that is listed in Hong Kong or other foreign exchange. 

H-shares are still regulated by Chinese law, but they are denominated in Hong Kong dollars and trade the same as other equities on the Honk Kong exchange. 

In a statement, FTSE Russell said the index constituents will be selected on a quarterly basis.

If a company is listed both in mainland China and Hong Kong, the share class with the lower price will be preferred.

The index provider already offers indices covering Chinese, including the FTSE China 50 Index and FTSE China A50 Index.

According to the company, more than half of all non-China domiciled Chinese ETF assets are tracking China-linked FTSE Russell benchmarks.

“As the Chinese domestic market opens, we continue to develop products that provide investors with a variety of tools to capture different aspects of the market,” said Mark Makepeace, FTSE Russell’s chief executive. 

“The FTSE China A-H 50 Index reflects our desire to create new index solutions for the region, as we look to support the diverse range of investment needs.”