FTSE/Xinhua  launches first Chinese Index

FTSE/Xinhua launches first Chinese Index

Joint venture company FTSE/Xinhua Index Ltd (FXI) has launched its capped, tradeable, China 25 Index, featuring the largest, most liquid Chinese equities available to international investors.

The index is designed for use by fund managers and investment banks to create index-based investment products, such as index-linked funds, derivatives and exchange traded funds aimed at overseas investors who want to invest in China.

The index will meet regulatory requirements worldwide and subject to U.S. regulatory approvals, an exchange traded fund on the new index will list on the New York Stock Exchange (NYSE). Other index linked products will follow in the coming months.

Fredy Bush, chairman of FXI and COO of Xinhua Financial Network, says: "As China prepares to enter the WTO, international investors demand more financial indices that adopt global standards such as the FTSE/Xinhua China 25 Index. We are confident that the individual strengths of the two partners will combine to create unique expertise on the Chinese market that has previously not existed."

The FTSE/Xinhua China 25 Index goes live today with dissemination of real-time valuations during local hours 9:30 am to 4:15 pm via Reuters.

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