.jpg)
FTSE Xinhua Index (FXI), the leading China index provider set up by global index provider FTSE Group and China market specialist Xinhua Finance, today announce the launch of the FTSE Xinhua H-Share Index. This index is particularly designed for meeting Chinese regulatory requirements and fulfilling the needs of domestic Chinese institutional investors, including QDIIs (Qualified Domestic Institutional Investors), who are looking to participate in overseas investment in Hong Kong.
FTSE Xinhua H-Share Index joins the FTSE Xinhua Hong Kong Index Series which already contains FTSE Xinhua Hong Kong Index and FTSE Xinhua ex-H-Share Index. This new index means that FTSE Xinhua Index now offers the most complete set of tools covering the Hong Kong market, and continues to meet the diversified needs of Chinese institutional investors. FTSE Xinhua Index is committed to maintaining the most accurate and comprehensive set of indexes required by investors in the Chinese market.
FTSE Xinhua Hong Kong Series is enjoying great commercial success. The FTSE Xinhua Hong Kong Index has already been chosen by China’s Social Security Fund (SSF), a strategic reserve fund accumulated by the central government to support future social security expenditures, as the benchmark for its active Hong Kong equity holdings.
Derived from FTSE Global Equity Index Series, the most widely used global benchmark, FTSE Xinhua H-Share index is calculated in real time and contains 49 H-Share companies classified under large and mid cap, with Petrochina (0857), Bank of China (3988), China Life Insurance (2628), China Construction Bank (0939) and China Petroleum & Chemical (0386) topping the list. In addition, constituents are capped at 15% of the total index to avoid over concentration on any single stock. The total investment market cap of the index is HKD 885 Billion as of July 7, 2006.
Ms Fredy Bush, Co-chairman of FXI and CEO of Xinhua Finance said, “FTSE Xinhua Index is always committed to employing its unique local knowledge to develop the most relevant indices for domestic and international investors and meet the evolving requirements caused by the regulatory changes in China’s market. The creation of this H-Share index is another testament to this commitment. ”
Mr. Mark Makepeace, Co-chairman of FXI and CEO of FTSE Group said, “FTSE Xinhua Index provides timely solutions for China’s evolving investment markets. FTSE Xinhua H Share Index is a unique new tool for Chinese domestic investors to invest in Hong Kong listed blue chips.”
The index is now calculating and is available through major data vendors. For details of the constituent list, index value and the Ground Rules, please visit: www.ftsexinhua.com
