FTSE and Xinhau to develop Chinese indices

FTSE and Xinhau to develop Chinese indices

FTSE is to work with Xinhua Financial News in Hong Kong on the creation of a series of real time indices for use by international investors and the Chinese investment community. The new company will be called FTSE/Xinhua Index Limited (FXIL).

The indices, to be announced early in 2001, can be used as performance benchmarks, as a basis for derivative trading and for index tracking funds including exchange traded funds for the Chinese market, says FTSE. All stocks in the FTSE/Xinhua indices will be free float adjusted and will be classified according to the FTSE Global Classification System.

The family of indices to be released will include benchmarks and tradable indices designed for international investors in China. Xinhua has recently introduced the Xinhua Composite Index of 400 Chinese companies which is to form the basis for joint development of further indices for international investors in China.

Mark Makepeace, FTSE CEO says: "FTSE is building a strong international presence and has already made an impact in the Asian market, shown by FTSE indices being adopted as investment benchmarks. FTSE will continue to build its presence in Asia and will be developing more local products for the Asia Pacific market."

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