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FTSE/Xinhua China A 50 Index Chosen By Hang Seng Investment For Two New Funds

Date 13/07/2004

FTSE Xinhua Index Limited, the joint venture China index company formed by FTSE Group and Xinhua Finance, today announced that Hang Seng Investment, one of Hong Kong’s leading investment fund companies, has launched two 100% Capital Guaranteed funds based on the FTSE/Xinhua China A 50 Index. Both the 12% Dividend Capital Guaranteed fund and the 100% Capital Guaranteed fund use the FTSE/Xinhua China A 50 Index as the underlying index on which the returns are based.

The FTSE/Xinhua China A 50 Index is a real-time tradable index comprising the top 50 “A” Share companies listed on the Chinese exchanges. Designed to meet the needs of domestic investors and China Qualified Foreign Institutional Investors (QFIIs), it can be used as a basis for both on-exchange and OTC derivative products, mutual funds and Exchange Traded Funds (ETFs).

“FTSE Xinhua indices are becoming increasingly recognised by both domestic and international investors as the measurement of the Chinese market,” said Mr Zhu Shan, Managing Director of FTSE Xinhua Index Limited, “The FTSE Xinhua Index Series is playing an important role in the investment process in China and the adoption of the FTSE/Xinhua China A 50 Index for the new Hang Seng 100% Capital Guaranteed Funds is a further endorsement of the growing demand for these indices.”

“Utilizing our expertise and experience in the China markets, we believe our index, which is constructed in a precise and transparent manner, can truly represent the performance of the 50 largest “A” Share companies in this exciting market,” added Mr. Zhu.

The successful partnership between FTSE and Xinhua Finance has brought international index expertise to the China equity market. The combination of FTSE’s knowledge in international indexing with Xinhua Finance's strong presence and capabilities in the China equity market creates a level of expertise in the China market that has previously not existed. Looking forward, FTSE and Xinhua Finance will continue to expand the FTSE Xinhua index family to cope with the demand of domestic and international investors.

For more information about the FTSE Xinhua Index Series, please visit http://www.ftsexinhua.com
http://www.xinhuafinance.com/en/products/indices_ftse.html.