Xinhua FTSE Launches Sector Indices for A200 Benchmark

Xinhua FTSE Launches Sector Indices for A200 Benchmark

May 16, 2007

    HONG KONG and BEIJING, May 16 /Xinhua-PRNewswire/ --
Xinhua FTSE Index (XFI), the leading China index provider,
today announced the launch of Xinhua FTSE 200 Sector
Indices on A shares, which include 38 sectors classified
according to the Industry Classification Benchmark (ICB).
The new indices will be distributed from today with the
base date at June 18, 2001.

    The new indices have been designed to provide investors
with a new benchmark tool for attribution analysis, and as a
basis for index-linked investment products such as ETFs.
Based upon the Xinhua FTSE 200 Index, the largest 200 A
share companies listed on both Shanghai and Shenzhen market
by market capitalisation, the new indices are calculated in
accordance with ICB, a globally recognised classification
standard developed by FTSE Group and Dow Jones Indexes. The
total net market cap is RMB 2,787,942 million as of April
30, 2007. 
    
    Commenting on the creation of the new index, Mr. Norman
Yen, Managing Director of Xinhua FTSE Index said: "The
launch of the FTSE Xinhua 200 sector indices will allow
Chinese and QFII investors an additional way to track the
maturation and performance of the China equity market.  The
introduction of these indices reflect not only the
increasing demand from our clients for a way to track the
growing Chinese industries, but also XFI's continued
commitment and leadership in responding to the changing
market demand both internationally and domestically."

    The indices are reviewed quarterly in January, April,
July and October and are calculated in Renminbi (CNY) and
HKD for end of day index values. Total Return Indices are
published at the end of each trading day.  

    For details of the constituent list, index value and
the Ground Rules, please visit: http://www.xinhuaftse.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,
Malaysia, 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 premier financial
information and media service company 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 five focused and
complementary service lines: Indices, Ratings, Financial
News, Investor Relations, and Distribution.  Founded in
November 1999, the Company is headquartered in Shanghai,
with offices and news bureaus spanning 14 countries
worldwide.   


    For more information, please contact:  

    Beijing
    Jean LI
    Xinhua FTSE Beijing office 
    Tel:   [phone]
    Email: [e-mail]
    
    Shanghai
    Joy Tsang
    Xinhua Finance
    Tel:   [phone]
    Email: [e-mail]

    Hong Kong
    Meredith Blakemore
    FTSE Asia Pacific
    Tel:   [phone]
    Email: [e-mail]

    Tokyo
    Stewart Ueno
    FTSE Japan
    Tel:   [phone]
    Email: [e-mail]

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

    London 
    Sandra Steel
    FTSE Group 
    Tel:   [phone]
    Email: [e-mail]