FTSE Xinhua Index Launches H-Share Index for QDIIs and Other Chinese Institutional Investors

FTSE Xinhua Index Launches H-Share Index for QDIIs and Other Chinese Institutional Investors

July 12, 2006

       
    HONG KONG & BEIJING, July 12 /Xinhua-PRNewswire/ --
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 the regulatory requirements of China
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:
http://www.ftsexinhua.com 

    About FTSE Xinhua Index 

    Established in late 2000, FTSE Xinhua Index (FXI), 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 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 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]
             [phone]
     Email:  [e-mail]

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

    Beijing

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

SOURCE  FTSE Xinhua Index