Bank of China Makes Fast Entry to Xinhua FTSE A Share Index Series

Bank of China Makes Fast Entry to Xinhua FTSE A Share Index Series

July 06, 2006

    HONG KONG and BEIJING, July 6 /Xinhua-PRNewswire/ --
Xinhua FTSE Index (XFI), the joint venture index company
set up by global index provider FTSE Group and China market
specialist Xinhua Finance, announces that Bank of China
(BoC, 601988) will be eligible for inclusion within the
Xinhua FTSE A Share Index Series following its listing on
the Shanghai Stock Exchange yesterday. Because of the large
market capitalization size, the bank will be added under the
new issue rule through the fast track after the close of
business on the fifth day of official trading, i.e. Tuesday
July 11, 2006, and effective from start of trading on
Wednesday July 12, 2006. 

    With total shares in issue of 177,818,910,740 and
investability weighting of 4%, BoC will be added into
Xinhua/FTSE China A 50 Index.  To balance, Shenzhen Chiwan
Wharf Holdings (000022) will be removed.  BoC will also be
added to other A Share Indices of 200, 600, All Share, as
well as the Xinhua FTSE Insurance investment index.  For
rebalance details, please refer to the technical notice at
here.

    The stock is classified under the Subsector
"Banks" (8355) of the Industry Classification
Benchmark.  The changes will also be reflected in the
Xinhua FTSE Galaxy Provincial Indices.  BoC's weighting
within indices will be confirmed based on its closing price
on the July 11, 2006. 

    Following the successful A share listing, Bank of China
(H share, 3988) will remain in the Xinhua/FTSE China 25
Index and Xinhua FTSE Hong Kong Index with a decreased
total shares in issue of 76,020,251,269 and an increased
investability weighting of 40%, effective from start of
trading on Wednesday July 12, 2006. 

    Both the earlier H Share listing and this second A
Share listing of Bank of China will be greeted
enthusiastically by domestic investors who have seen the
restrictions on IPOs lifted recently, as well as by the
international investors who have been given QFII status,
the quota for which has now reached US$ 7,145 million.  FXI
have seen great success to date with providing access to the
A Share market with financial products such as the iShares
FTSE/Xinhua A50 China Tracker (2823) which has about HK$
8,000 million invested.

    More information on the constituents and Ground Rules,
please visit: http://www.ftsexinhua.com . 

    Notes to Editors

    About Xinhua FTSE Index 

    Established in late 2000, Xinhua FTSE Index (XFI), a
joint venture between Xinhua Finance Limited 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 Xinhua FTSE
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 FTSEurofirst Index series, as well
as domestic indices such as the prestigious FTSE 100.  The
company has collaborative arrangements with the Athens,
AMEX, Cyprus, Euronext, Johannesburg London, Madrid, NASDAQ
and Taiwan exchanges, as well as Nomura Securities, Hang
Seng and Xinhua Finance of China, FTSE recently signed an
agreement with Dow Jones Indexes to develop a single sector
classification system for global investors.

    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 unchallenged leader
in financial information and media, and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399)
(OTC ADRs: XHFNY).  Bridging China's financial markets and
the world, Xinhua Finance serves financial institutions,
corporations and re-distributors through four focused and
complementary service lines: Indices, Ratings, Financial
News and Investor Relations.  Founded in November 1999, the
Company is headquartered in Shanghai with 20 news bureaus
and offices in 19 locations across Asia, Australia, North
America and Europe. For more information, please visit
http://www.xinhuafinance.com . 

    For more information, please contact:  

    Hong Kong
     Joy Tsang, Xinhua Finance
     Tel:   [phone] or [phone]
     Email: [e-mail]

     Tim Nicholls, FTSE Asia Pacific
     Tel:   [phone]
     Email: [e-mail]

    Beijing
     Catherine Song, Xinhua FTSE Beijing office
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua FTSE Index