FTSE, Xinhua launch China index

The China 25 is the first of a series of tradable China indices for foreign and domestic users.

Jame DiBiasio

April 19, 2001

Yesterday (Thursday) FTSE and Xinhua Financial Network’s joint venture rolled out the China 25 index - a new index of red chips, H, B and N shares for foreign investors and traders, which follows FTSE’s guidelines of adjusting for a free float and capping any one stock’s weighting at 10%. It directly takes on MSCI (the Morgan Stanley Capital International indices), whose China country index does not have that cap, which means a handful of giant stocks such as China Mobile can comprise over 50% of the index.

The New York Stock Exchange has also indicated its commitment to listing exchange-traded funds (ETFs) on the back of the China 25, which is expected to launch in mid-2002, says Mark Makepeace, CEO at FTSE. This will be the first China ETF globally.

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