First Review Expands Geographical Coverage Of FTSE/Hang Seng Indexes

Following its meeting on 10 September 2002, the FTSE/Hang Seng Indexes Committee today announces enhancements to the methodology for calculating FTSE/Hang Seng Asian Sector and Asiatop Indexes. The Committee agreed to include coverage of the Malaysian stock market in the FTSE/Hang Seng Indexes and to reduce the capping on individual stock weights to 10% for the FTSE/Hang Seng Asiatop Index.

An extraordinary review will be undertaken by the Committee in December 2002 on the constituent changes resulting from these enhancement. The constituent changes will become effective after the close of business on Friday 20 December (ie. effective from the start of trading on Monday 23 December 2002).

The FTSE/ Hang Seng Indexes did not include Malaysia when they were launched in February this year. 'We welcome Malaysia to the FTSE/Hang Seng Indexes, which will now cover 9 markets in Asia," said Mr Graham Colbourne, Chairman FTSE Asia Pacific.

The Committee also recommended reducing the capping of the FTSE/Hang Seng Asiatop Index to 10%. "Capping at 10% is more in line with international standards, and a restriction in the dominance of certain stocks within the index will be beneficial." Mr Colbourne explained.

The independent committee responsible for overseeing the management of the Indexes is chaired by Mr Stuart Leckie, Chairman, Hewitt Associates and is comprised of independent, experienced market practitioners who directly oversee the management of the Indexes.

The current markets in the region eligible for inclusion in the Indexes are Hong Kong, Indonesia, Korea, Philippines, Shanghai and Shenzhen, Singapore, Taiwan and Thailand.

Mr Vincent Kwan, Director of HSI International Limited, said "Both FTSE and HSI are pleased with the performance of the FTSE/Hang Seng Indexes since their launch in February this year, and the market's warm endorsement of our collaboration to produce the first tradable regional sector and large cap indexes for Asia."

The FTSE/Hang Seng Indexes are free-float adjusted and reviewed regularly. They are also designed according to FTSE's internationally proven index calculation methodology to ensure that they are transparent and accurately reflect the region's markets.

"The FTSE/Hang Seng Indexes are truly representative of the Asian market," said Mr Colbourne. "We look forward to welcoming the introduction of derivative products, exchange traded products and retail funds on the Indexes."

Further information on the FTSE/ Hang Seng Indexes is available at the websites of HSI Services Limited at www.hsi.com.hk/ftsehangseng and FTSE at www.ftse.com/ftsehangseng.