New FTSE Index Provides Domestic Benchmark For China

International investors with an interest in the domestic Chinese market can analyse and assess the performance of China A + B shares more easily from today, as FTSE/Xinhua Index Ltd (FXI) launches a new family of domestic China indices. Five new indices go live today, including the FTSE/Xinhua China A 600, which is set to become the definitive headline index for the domestic Chinese market.

The index series measures the performance of both A and B shares, listed on Shanghai and Shenzen Stock Exchanges. The FTSE/Xinhua China A series comprises a tradable, a benchmark and sector based indices, while the B share series contains one tradable and one benchmark index. The five new indices, along with the recently launched tradable index for international investors, the FTSE/Xinhua China 25, make up the FTSE/Xinhua China series.

Commenting on the launch, Mark Makepeace, a director of FXI and Chief Executive of FTSE said "The combination of FTSE and Xinhua's specialist skills have combined to develop and calculate these innovative new products. The new index series aims to contribute to the ongoing internationalisation of the Chinese investment market, by providing a transparent and globally recognised method of index design."

Fredy Bush, FXI Chairman and CEO of Xinhua Financial News, said: "As China's anticipated accession to the World Trade Organisation (WTO) comes closer, international investors seek a reliable and effective research tool to gauge the performance of the China market. The index reflects the energy of China's financial market, as well as the enthusiasm the international community feels for it. This is a good time for China and a good time for FXI."

Constituent lists for the FTSE/Xinhua China series can be found at http://www.ftse.com