The new indexes are the FTSE Xinhua QDII HK Index, and the FTSE Xinhua QDII HK ex H share Index. These indexes are tailor-made for mainland funds, which will participate in China’s Qualified Domestic Institutional Investor (QDII) scheme.
“We are proud to provide domestic investors with the FTSE Xinhua QDII indexes to help support their first investment activities in overseas markets. The indexes are available now and ready to use as soon as the QDII scheme is implemented in China,” said Mark Makepeace, FXI Chairman and Chief Executive of FTSE Group.
Xinhua Finance CEO and FXI Director Fredy Bush said the FXI, as a widely-trusted index provider for the Chinese markets, continues to deploy its international indexing standards and in-depth local knowledge to develop the most relevant indexes for today’s investors.
“This is another example of how we produce the most reliable investment tools for global investors to make the best investment decisions. ”
FTSE Xinhua Index plans to develop customized indexes based on specific market needs when the QDII scheme officially launches.
The FTSE Xinhua QDII HK Index comprises 154 constituents including 75 large and mid-cap companies from the FTSE Hong Kong index, 27 red chips, 53 H shares and also including HSBC, at a capped 20% weight, aggregating an investible market capitalization of USD715,096 million. The index mostly covers such sectors as financials, resources, non-cyclical services, general industrials, and cyclical services.
The FTSE Xinhua QDII HK ex-H Share Index consists of 102 constituents including 74 large and mid-cap companies from the FTSE Hong Kong index, 27 red chips, as well as HSBC at a capped 20% weight with H shares excluded, accounting for a total investible market capitalization of USD502,411 million as of January 19 2005. The index mostly covers such sectors as financials, non-cyclical services, general industrials, cyclical services, and utility.
Both of the indexes will be calculated in Hong Kong dollars, U.S. dollars and Renminbi, in real time and at the end of day, based on a back history of five years. Index values are published at FXI’s website (www.ftsexinhua.com) and by a number of vendors and media worldwide.
