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. 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, and FTSE and Xinhua will build on the success of this index by developing further indices for international investors in China.
Mark Makepeace, FTSE CEO said: “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.” Ma Yum Sheng, Chairman of Xinhua Financial News Agency said: “This is a great combination of FTSE’s global experience and expertise in the design, calculation and management of indices with Xinhua’s knowledge and experience of the Chinese investment market. I believe we will be providing index products unrivalled in the Chinese market.”
