Xinhua FTSE Index Announces Annual Review Results

Xinhua FTSE Index Announces Annual Review Results

July 19, 2006

- Changes to tradable A50 and 200 Indexes

    BEIJING, July 19 /Xinhua-PRNewswire/ -- Xinhua FTSE
Index (XFI), the independent China index provider, today
announced its Index Committee held a meeting on July 11,
2006 to review and approve constituent changes to the
Xinhua FTSE Index Series.  All these changes will be
applied to the indices, effective after the close of
business on Friday, 21 July 2006 (i.e. on Monday, 24 July
2006).

    The annual review resulted in constituent changes in
Xinhua/FTSE China A50, 200, 400, Small Cap and B All Share
indices, while no change was made to the constituent list
of the Xinhua/FTSE China 25 and B35 Index. 

    There were three companies fulfilling the auto addition
level for the A50 index: Jiangsu Express (600377), Qinghai
Salt Lake Potash (000792), and Shanghai Lujiazui
Fin&trade (600663).  To balance the index, Shenzhen
Energy Investment (000027), Guangzhou Development Industry
Holdings (600098) and Anhui Expressway (600012) were
deleted. Following its A Share IPO, Bank of China (601988)
qualified for fast entry into A50 effective from July 12,
2006.

    The Xinhua FTSE 200 Index had twelve new additions
including Jiangsu Express (600377), Shanghai Lujiazui
Fin&trade (600663), Jiangxi Hongdu Aviation Industry
(600316), Shenzhen Expressway (600548), and Shanghai
Aerospace Automobile Electro Mechanical (600151).  For
details, please refer to the tech notice here.

    The committee also announced the adjustments in the
Ground Rules of Xinhua/FTSE China 25 and Xinhua FTSE B
index series.  The inclusion date of a listing company is
changed from the close of the first trading day to that on
the fifth day.  This will allow the index users enough time
to adjust their positions in the indices and avoid
irrational price fluctuation during the first few days
following initial public offerings as well.

    Based on transparent Ground Rules to ensure
consistency, liquidity and investability, all the Xinhua
FTSE indices are reviewed by the independent Index
Committee, which comprises a group of local and
international independent financial market experts. The
index series is widely regarded as the leading measure of
the China market by domestic and international investors
and is used as the basis of a set of Exchange Traded Funds
(ETFs), and derivative products on exchanges around the
world.  Currently, the total assets under Xinhua/FTSE China
25 and A 50 ETFs exceed USD 4 billion. 

    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.xinhuaftse.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 . 

    SUMMARY OF INDEX CHANGES

    Xinhua/FTSE China 25 Index
    Inclusion: 0
    Exclusion: 0

    Xinhua FTSE China B 35
    Inclusion: 0
    Exclusion: 0

    Xinhua FTSE China B All Index
    Inclusion: 1
    Exclusion: 0

    Xinhua FTSE China A50 Index
    Inclusions: 3
    Exclusions: 3

    Xinhua FTSE 200 Index
    Inclusions: 12
    Exclusions: 12

    Xinhua FTSE 400 Index
    Inclusions: 42
    Exclusions: 42

    Xinhua FTSE Small Cap Index
    Inclusions: 53
    Exclusions: 77

    For more information, please contact: 

    Beijing

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

    Hong Kong

     Joy Tsang 
     Xinhua Finance 
     Tel:   [phone]
     Email: [e-mail]

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

    New York

     Lynne Sims, 
     FTSE Americas 
     Tel:   [phone]
     Email: [e-mail]

    London 

     Sabrina Bhangoo
     FTSE Group 
     Tel:   [phone] 
     Email: [e-mail]

SOURCE  Xinhua FTSE Index