Global index provider FTSE has been selected by Value Partners Index Services to build the FTSE Value-Stocks China Index as a custom index solution for the first Exchange Traded Fund (ETF) to be listed by Sensible Asset Management Hong Kong (SAM).

The FTSE Value-Stocks China Index, which will be used as the basis for the Value China ETF, combines FTSE index design and calculation capabilities with the bespoke, value-based stock selection methodology developed by Value Partners. The index captures the performance of 25 quality value stocks among liquid and tradable Chinese companies listed on the Hong Kong exchange including H Shares, Red Chips and P Chips.

The ETF has now listed on the Stock Exchange of Hong Kong (SEHK), and Paul Hoff, managing director, Asia Pacific, FTSE Group, said: "We expect to see an increasing number of custom requests as managers develop ETFs and other products with new themes or underlying strategies into the Asian market, and are responding with our strengthened custom team."