JPMorgan is reportedly proposing a new Asian credit index – with lower weighting for China.

The current index – the JPMorgan Asia Credit Index (JACI) – has a 43% China weight. The new index is reported to be closer to 30% China. The existing index would also continue to be maintained in parallel.

Index changes are relevant for demand – as fund managers track or benchmark themselves against these indicies – so adjust holdings based on them.

The current index is used as a benchmark for over $85bn assets under management (AUM).

Index poor performance can also cut demand for passive and active funds in an asset class.

A new index could also increase demand for issuers from other Asian countries currently in the JACI, as well as Japan, Australia, New Zealand and Papua New Guinea – which may be added to the new index.