FTSE Russell will include China-listed equities in its global indices in a move that will see so-called A-shares constitute 5.5 per cent of the company’s key emerging markets index.

The index provider said in a statement on Thursday that it would begin phasing in inclusion of eligible A-share stocks from June 2019. On completion Chinese equities will represent initial net passive inflows of $10bn of assets under management and are projected to account for 0.57 per cent of the FTSE Global All Cap Index.

“China will also be added to our Watch List for possible inclusion in FTSE’s global bond indexes”, said Mark Makepeace, chief executive of FTSE Russell. “The Chinese authorities have continued to introduce reforms designed to open their market to international investors and have transformed their economy into the second largest in the world.”