The Nasdaq Stock Market, Inc. (NASDAQ(r)) (Nasdaq:NDAQ) announced plans to introduce the NASDAQ China Index(sm) (Nasdaq:CHNX), which is designed to track the performance of the largest Chinese companies whose securities are listed and actively traded in the U.S. NASDAQ will begin disseminating the Index during the second quarter of 2007.
The NASDAQ China Index will be a key benchmark to track the performance of innovative companies that have stimulated one of the world's most rapidly growing and industrializing economies. The Index will initially be comprised of 30 Chinese companies with a combined market capitalization of more than $600 billion that are listed on NASDAQ, the New York Stock Exchange, or the American Stock Exchange. With the Index, NASDAQ will provide these companies with greater visibility and access from the U.S. to a large pool of investors worldwide.
"This Index will enable investors worldwide to follow companies in a broad range of industries that have helped propel one of the world's fastest growing and most successful economies over the last 20 years," said NASDAQ Executive Vice President John Jacobs. "China is on the verge of becoming the world's fourth-largest economy, a testament to the innovative companies that are included in this essential investment index."
Charlotte Crosswell, President of NASDAQ International, said, "The NASDAQ China Index highlights over two decades of NASDAQ's activity and commitment to the Chinese market. We are confident that the index will further enhance the visibility of the companies listing from China among U.S. and international investors."
The NASDAQ China Index will be calculated using a modified market capitalization methodology. Companies headquartered in China, inclusive of Hong Kong, which are listed on The NASDAQ Stock Market, the New York Stock Exchange, or the American Stock Exchange are eligible for Index inclusion. To be eligible, stocks must also have a minimum worldwide market capitalization of $200 million, a minimum average daily U.S. trading volume of 100,000 shares, and a minimum price of $3.00 per share.
NASDAQ is a force of innovation and influence in the financial products industry. It maintains its position as a world class innovator by developing new indexes of its own and with other partners. NASDAQ is home to some of the world's most closely watched indexes including the NASDAQ Composite Index(r), the NASDAQ-100 Index(r), the NASDAQ(r) Clean Edge(r) U.S. Liquid Series Index, and the NASDAQ Biotechnology Index(r). In addition to pursuing listings of exchange traded funds (ETFs) and other structured products, NASDAQ actively develops indexes and other index-based derivative securities for the global capital markets.
