.jpg)
The FXI China 25, a tradable index designed to serve as a base for derivatives and other financial instruments, tracks the performance of the 25 largest and most liquid Mainland China enterprise stocks (H shares and red chips) listed in Hong Kong. Each constituent's weighting in the index is free-float adjusted and capped at 10 per cent, and frequent reviews ensure the index remains a true reflection of the market.
The FXI China 25 Futures and Options will complement the wide range of Mainland-China related products currently trading on HKEx's securities and derivatives markets. These include the nearly 200 H-share and red-chip companies listed on The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of HKEx, stock futures and stock options on individual H shares and red chips, H-shares Index Futures and H-shares Index Options.
"This agreement allows us to build on our strength as the premier international marketplace for Mainland China-related securities and derivatives," said HKEx Chief Operating Officer Patrick Conroy. "Backed by the international indexing experience of the FTSE Group and the Xinhua Finance’s expertise on Mainland China-related companies, FXI is an ideal business partner for this project."
FTSE Chief Executive and FXI Co-chairman Mark Makepeace and Fredy Bush, Xinhua Finance CEO and FXI Co-chairman, said the launch of the contracts is further proof that FXI is firmly established as the leading index provider for the China markets.
"These products are an important contribution to investors in the China markets because these allow them to hedge investments in the cash markets in a way that was not possible before," said Ms Bush. "The potential China stock index futures is huge and FXI is committed to developing indices to serve that need," said Mr Makepeace.
About HKEx
Hong Kong Exchanges and Clearing Limited (HKEx) is the publicly listed holding company of Hong Kong’s stock and derivatives exchanges and their associated clearing houses. Its stock exchange is one of the world’s 10 largest in terms of market capitalisation. HKEx provides a comprehensive range of products and services for issuers and investors. Trading as well as clearing and settlement on HKEx’s exchanges is fully electronic.
For further information HKEx, please visit www.hkex.com.hk.
About FTSE Xinhua Index
Established in late 2000, FTSE Xinhua Index (FXI), a joint venture between Xinhua Financial Network, a subsidiary of Xinhua Finance Limited (TSE Mothers: 9399) and FTSE Group, came into being to facilitate the creation of real-time indices for the Chinese market. The indices can be used as a basis for the trading of derivatives, index-tracking funds, Exchange Traded Funds and as performance benchmarks. The combination of FTSE's expertise in international indexing with Xinhua Finance’s strong presence and capabilities in China creates a level of expertise in the Chinese market that is unprecedented. Providing the combined coverage for the Shanghai and Shenzhen exchanges, all of the FTSE Xinhua indices are designed according to internationally proven index methodology to ensure products are transparent, clear and consistent. For daily data and further information, please visit www.ftsexinhua.com.
