Three Companies Are Added To The Blue Chip FXI China A50 Index
BEIJING, April 14 /Xinhua-PRNewswire-FirstCall/ -- FTSE/Xinhua Index
Limited (FXI), the China index provider, announced the quarterly review
results of the FTSE/Xinhua China Index Series. The changes for the FTSE/Xinhua
China A 50, A 200, A 400, A 600, A Small Cap and B 35 indices will be taken
into effect after the close of business on Friday, 16 April 2004, i.e. on
Monday, 19 April 2004.
The FTSE/Xinhua China A 50 Index reported three additions and three auto
deletions. China Southern Airlines (600029), TCL Corporation (000100) and
Shanghai Electric Power (600021) were added totalling the investable market
cap of the index to USD 41,924.21 million (RMB 347,002 million) respectively.
"The FTSE/Xinhua China A 50 Index comprises the top 50 A share companies
by total market cap reflecting about 33% of China A share universe," said Mr.
Mark Makepeace, Chairman of FXI and Chief Executive of FTSE Group, "There are
many international investors using this index as the definitive view of the
China market, for example, CitiGroup has used the index to launch an index-
linked product, and many other QFIIs subscribe to the index for research
usage. We are confident that international investors will create more index-
linked products based on this tradable index in the coming months."
"With the vigorous development of the QDIIs (Qualified Domestic
Institutional Investors) scheme, more domestic institutional investors pay
attention to H shares, B shares and red chips rather than just focusing on A
shares, and our FTSE/Xinhua China 25 Index is the best tool for this end,"
said Ms Fredy Bush, Vice Chairman of FXI and Vice Chairman & CEO of Xinhua
Finance. She added, "We are the only China index provider that is able to
serve both international and domestic investors who want to make investments
in China."
The FTSE/Xinhua China 25 Index, which consists of the top 25 Chinese
companies by total market cap, including B shares, H shares and red chips,
dropped Shanghai Industrial Holdings (Red Chip-0363) and subsumed Zhejiang
Expressway (H share-0576) under this quarterly review.
All of the FTSE/Xinhua China indices have been reviewed by the independent
Index Committee based on the transparent Ground Rules to ensure consistency,
liquidity and investability. The review reports only a handful of turnovers
either caused by new IPOs or auto rebalancing. This shows that the index
series continuously maintained stability and at the same time sustained the
representativeness by reflecting the market movement in an appropriate and
timely manner.
There are no investability weight changes to any of the indices or
constituent adjustments in the FTSE/Xinhua China B 35 Index reported. Details
of the constituent changes and the latest reserve lists can also be found at
http://www.ftse.com/./tech_notices/2004/q2/07915_20040405_Xinhua_Review.jsp .
The FTSE/Xinhua China Indices have been created for use as a basis for the
trading of derivatives, index-tracking funds, Exchange Traded Funds and as
performance benchmarks in Mainland China. The series is designed with indices
by market cap, broad-base benchmarks, sector indices and provincial indices.
The biggest index fund in China, the Boshi Yufu Fund, is tracking against the
large cap FTSE/Xinhua China A 200 Index.
Note to Editor:
About FTSE/Xinhua Index
Established in late 2000, FTSE/Xinhua Index (FXI), a joint venture
between Xinhua Finance (Xinhua Financial Network, Ltd.) and FTSE, 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 http://www.ftsexinhua.com.
More Information:
Jean Li
FTSE/Xinhua Index (Beijing)
+86-10-6515-9265
jean.li@xinhuafinance.com
Joy Tsang
Xinhua Finance (Hong Kong)
+852-3196-3983
joy.tsang@xinhuafinance.com
SOURCE FTSE/Xinhua Index Limited
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Related links:
http://www.ftsexinhua.com
CONTACT:
Joy Tsang of Xinhua Finance (Hong Kong),
+852-3196-3983, or joy.tsang@xinhuafinance.com; Jean Li of
FTSE/Xinhua Index (Beijing), +86-10-6515-9265,
jean.li@xinhuafinance.com
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