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FTSE Xinhua Index Ltd (FXI), the leading Chinese index specialist, has licensed the FTSE/Xinhua China 25 Index to CIMB-Principal Asset Management Berhad (CIMB-Principal) as the basis of the first Chinese themed Exchange Traded Fund (ETF) in Malaysia, which lists today.
The ETF will be the first international ETF listed on Bursa Malaysia, giving local investors exposure to offshore markets. CIMB-Principal is also listing a FTSE ASEAN 40 Malaysia feeder fund which will further expand the range of FTSE based ETFs in Malaysia.
The FTSE Xinhua Indices are widely recognized as the definitive set of indices for China. They are based on FTSE’s global indexing standards and give international investors the most comprehensive, investable and representative view of the Chinese market. The indices continue to meet the growing demand for China themed products with more than 55 per cent of China themed ETF AUM (approximately USD 18 billion) tracking FTSE Xinhua indices globally.
Paul Hoff, Managing Director, Asia Pacific, FTSE Group said, “FTSE Xinhua indices have become the natural choice globally for investors who want Chinese themed investment products developed using internationally recognised standards. CIMB-Principal listing both an ETF and a feeder fund based on our Asian indices highlights why they are the ideal for capturing unique Asian opportunities. We are pleased to be working with CIMB-Principal as they develop their ETF product suite for their Asian and global clients.”
Campbell Tupling, Chief Executive, CIMB-Principal Asset Management Berhad, added “There is a growing interest among our clients to explore investment opportunities in the Chinese market. Designing an ETF based on the FTSE/Xinhua China 25 Index enables us to use FTSE’s expertise and international standards to meet the needs of investors. We look forward to continuing our relationship with FTSE as our product offerings expands.”
The FTSE/Xinhua China 25 Index comprises of the 25 largest H shares and Red chips by market capitalisation and is the first index to track their performance, giving international investors access to the China market without the need for a QFII quota. The index is designed to meet fund regulatory requirements worldwide, with constituent weightings capped at 10% to avoid over-concentration in any single stock. The index is based on FTSE’s award winning methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules.
For more information on the FTSE/Xinhua China 25 Index or other FTSE Xinhua indices please visit www.ftse.com/xinhua. For more information on the FTSE/ASEAN 40 Index please visit www.ftse.com/asean.
