HONG KONG, May 19 /Xinhua-PRNewswire-FirstCall/ -- FTSE Xinhua Index
(FXI), the leading China index provider, and China Asset Management Co., Ltd
(ChinaAMC), one of China's largest asset management companies, have recently
signed a licensing agreement that enables ChinaAMC to launch the first high
yield fund, a new-kind of investment vehicle, in China.
    The fund, benchmarked against the FTSE Xinhua High Yield 150 Index, is an
open-ended fund available for subscription between May 9 to June 10.  The FTSE
Xinhua High Yield 150 Index is an end-of-day benchmark index comprising the
top 150 China A-share companies in the FTSE Xinhua 600 Index with the highest
yield, selected on the consistency of dividend payments over the past three
years, subject to a liquidity screen.  The index out-performed the FTSE Xinhua
600 Index and general A-share market over the past three years.
    A spokesman for ChinaAMC said the company was excited to take the lead to
put the popular yield investment concept of international markets into
practice in China by utilizing FXI's international experience and local know-
how.
    "The fund provides an investment in companies which generated real
benefits to shareholders by distributing dividends.  In our philosophy, which
is also proven in the international markets, the ability of paying consistent
dividend reflects that the companies had made good earnings, and also its good
potential to produce higher shareholder values," the spokesman said.
    FTSE Xinhua Index managing director Zhu Shan said, "I am delighted that
the FXI indices are recognized and used by China's leading asset management
company.  FXI continues to be the first and the most innovative in the market
which is illustrated in our market share dominance."
    "FTSE Xinhua Index is committed to provide the most relevant investment
tools for China, and this new product is further evidence that we are well-
positioned to accommodate specific investment objectives and provide higher
returns to investors," Mr Zhu added.
    The index covers a wide range of 24 different sectors, of which Steel &
Other Metals, Household Goods & Textiles, and Electricity are the biggest
sectors including more than 15 constituents each.  The top 5 constituents by
yield are Nanjing Iron & Steel (600282), Liaohe Jinma Oilfield (000817),
Gemdale (600383), Inner Mongolian Baotou Steel Union (600010) and Guangdong
Electric Power Development (000539).
    The FTSE Xinhua High Yield 150 Index was launched on 15 April, 2005, and
will be reviewed annually in January.  For details, please go to
http://www.ftsexinhua.com .

    Notes to Editor:
    About China Asset Management Co., Ltd.
    Established on April 9, 1998 with approval from the China Securities
Regulatory Commission, ChinaAMC is one of the first national fund management
firms in China.  ChinaAMC's registered capital is 138 million RMB.  Its head
office is in Beijing, with branches in both Shanghai and Shenzhen.
As of September 2004, the company has nearly RMB 30 billion assets under
management.  ChinaAMC manages the greatest number of funds in China and is one
of the top Chinese firms in terms of the size of assets under management.  In
July 2004, the company became the only fund management company authorized by
the Shanghai Stock Exchange to co-develop the first ETF in mainland China.
    ChinaAMC continuously provides the market with new and innovative products
that meet the changing demands of domestic investors.  In 1999, with the
launch of our Xing He Fund, ChinaAMC marked the creation of the first enhanced
index fund in mainland China.  In 2002, ChinaAMC also launched the first pure
bond fund in China with a record-breaking initial subscription of 5.13 billion
RMB.  In 2004, by closely cooperating with the Shanghai Stock Exchange,
ChinaAMC launched the mainland's first Exchange Traded Fund (ETF): China SSE
50 ETF.
    In April 2004, Morningstar and Shanghai Securities News co-elected
ChinaAMC the "Best Fund Management Company" in China.
    For further information, please visit: http://www.chinaamc.com .

    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 http://www.ftsexinhua.com.

    About FTSE Group
    FTSE Group is a world-leader in the creation and management of indices.
With offices in London, Frankfurt, Hong Kong, Madrid, Paris, New York, San
Francisco and Tokyo, FTSE Group services clients in 77 countries worldwide.
It calculates and manages the FTSE Global Equity Index series, which includes
world-recognised indices ranging from the FTSE All-World Index, the FTSE4Good
series and the recently launched FTSEurofirst Index series, as well as
domestic indices such as the prestigious FTSE 100.  The company has
collaborative arrangements with the AMEX, Athens, Cyprus, Euronext,
Johannesburg, London, Luxembourg, and Madrid exchanges, as well as with Nikkei
of Japan (Nihon Keizai Shimbun, Inc), and Xinhua Financial Network of China.
FTSE recently signed an agreement with Dow Jones Indexes to develop a single
sector classification system for global investors, named the Industry
Classification Benchmark (ICB).
    FTSE indices are used extensively by investors world-wide for investment
analysis, performance measurement, asset allocation, portfolio hedging and for
creating a wide range of index tracking funds.  Independent committees of
senior fund managers, derivatives experts, actuaries and other experienced
practitioners review all changes to the indices to ensure that they are made
objectively and without bias.  Real-time FTSE indices are calculated on
systems managed by Reuters.  Prices and FX rates used are supplied by Reuters.

    About Xinhua Finance Limited
    Xinhua Finance Limited is China's premier financial services and media
company, listed on the Mothers board of the Tokyo Stock Exchange (symbol:
9399).  The Company provides financial news and information, as well as a
broad array of financial products and services unique to the China markets.
Xinhua Finance provides real time coverage of Chinese and Asian equity
markets, delivering an integrated platform of China-specific indices,
financial news feeds, credit ratings, and investor relations services to
global financial institutions and re-distributors via leased line, Internet,
and satellite technology.
    Founded in 1999, the Company is headquartered in Hong Kong and has 21
offices and 19 news bureaus across Asia, Australia, North America and Europe.
For more information, see http://www.xinhuafinance.com .

    For more information

    Jean Li (Beijing)
    Tel:   +86-10-6515-9265
    Email: jean.li@xinhuafinance.com

    Joy Tsang (Hong Kong)
    Tel:   +852-3196-3983 or +852-948-64364
    Email: joy.tsang@xinhuafinance.com

    Carol Chung (Hong Kong)
    Tel:   +852-2230-5801
    Email: carol.chung@ftse.com

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