FTSE And Value Partners Launch Custom - FTSE Value-Stocks China A-Share Index

FTSE Group (“FTSE”), the leading global index provider, and Value Partners Index Services Limited (“Value Partners”), a wholly-owned subsidiary of Value Partners Group, today launched the FTSE Value-Stocks China A-Share Index. The customised index offers a new and unique investment opportunity for investors looking to benefit from Value Partners’ expertise in value investing, as applied to China’s A-Share market.

The new index uses Value Partners’ unique value investing methodology, and is calculated and maintained using FTSE’s dedicated custom index solutions. The Index* captures the performance of liquid-value stocks selected from the investable universe of companies listed in China’s A-Share market. Performance of FTSE Value-Stocks China A-Share Index since the base date of 31 May 2005 until 31 January 2011 was 396.2%, compared to FTSE China A50 Index’s performance of 173.5% over the same period.

The FTSE Value-Stocks China A-Share Index is the latest in the growing family of value indices, which also includes the unique and recently launched FTSE Value-Stocks Taiwan Index and FTSE Value-Stocks Korea Index. The initial index in the series – the FTSE Value-Stocks China Index – was launched in July 2009, and forms the basis of the Value China ETF (Stock code: 3046 HK).

Mr. William Chow, Managing Director of Value Partners’ exchange traded fund (ETF) business, said, “Our Value Index family of products is growing to best serve investors interested in using a basket of value stocks. As with our other indices, the FTSE Value-Stocks China A-Share Index will include value stocks identified using our unique, value based and contrarian methodology. Moreover, since we use a contrarian approach, our process demands that we exclude stocks that most analysts favor with buy calls, and choose unfashionable but still attractive value stock opportunities.”

Ms. Jessie Pak, Director, Asia of FTSE Group, said “We are delighted to further extend our cooperation with Value Partners to expand the range of FTSE customised value-based indices. The index combines FTSE’s custom expertise with the investment knowledge and distinct methodology of Value Partners, to expand FTSE’s offering within the China A-Share market.”

For more information on the FTSE Value-Stocks Index Series including the ground rules, please visit www.ftse.com/valuestocks and www.valuepartners-index.com.hk.

Background

*Table 1. Key characteristics of the new FTSE Value-Stocks China A-Share Index