Bank Of China Makes Fast Track Entry To FTSE Xinhua Index Series

FTSE Xinhua Index (FXI), the joint venture index company set up by global index provider FTSE Group, and China market specialist Xinhua Finance announces that following today’s listing of the Bank of China (BoC) on the Hong Kong Exchange, the company becomes eligible for inclusion within the FTSE Xinhua Index Series. Because of the large market capitalization size of the BoC, fast track rules are applied and thus the bank will be added at the close of business today to FTSE Xinhua China 25 and FTSE Xinhua Hong Kong Index.

Zhu Shan, Managing Director, FTSE Xinhua Index commented: “FTSE Xinhua indices are designed to reflect market conditions – by adding Bank of China to the index series under fast track rules means that both international and domestic investors can capture the performance of an important stock straight away.”

BoC becomes a member of the FTSE Xinhua China 25 Index with 243,510,368,009 shares in issue and a free float of 10%. BoC’s weighting within the index will be confirmed based on its closing price on the 1st June and is classified under the Subsector Banks (8355) of the Industry Classification Benchmark. Zhejiang Expressway (H share, 0576) is removed from the index to rebalance.

The FTSE Xinhua China 25 Index consists of the largest and most liquid Chinese companies classified as ‘H’ Shares and ‘Red Chip’ shares. The index has been adopted by a number of organizations as the basis for ETFs and derivatives, with products listed in New York, Europe and Hong Kong. At the end of May 2006, total assets under management against the FTSE Xinhua China 25 was USD 3.5 billion.

The BoC will also make a fast track entry to the FTSE Xinhua Hong Kong Index. This index was recently chosen by the National Social Security Fund of China as the benchmark of its Hong Kong equity holdings following the changes in regulations which allow domestic Chinese institutional investors to invest overseas.

More information on the FTSE Xinhua Index Series, including constituent lists, is available at www.ftsexinhua.com.