FTSE Xinhua Index Announces Index Changes

FTSE Xinhua Index Announces Index Changes

January 11, 2007

China Life (A) is fast track addition to FXI series
Regular Review adds China Merchant Bank (H) to FXI China
25

    BEIJING, HONG KONG, Jan. 11 /Xinhua-PRNewswire/ -- FTSE
Xinhua Index (FXI), the independent China index provider,
will add the newly-listed China Life (A Share, 601628) to
its suite of equity indices from Tuesday, 16 January 2007.
FXI's user-friendly index methodology allows newly listed
large capitalisation stocks to be added to the index series
immediately as fast track entrants, and China Life meets
this rule. 

    Following China Life's successful IPO on Shanghai Stock
Exchange on 9 January, 2007, the country's largest life
insurance company, will become a member of FTSE Xinhua
China A50, 200 and all other applicable indices with the
total shares in issue of 20,823,530,000 and an
investability weighting of 5%, 5 trading days after its
debut. To balance the index, Guangdong Electric Power (A
share, 000539) and Hubei Chutian Expressway (A Share,
600035) will be removed from A50 and 200 indices
accordingly. For details of the changes please refer to the
full technical notice here

    Separately, the FTSE Xinhua Index Committee held its
regular quarterly review meeting on 9 January 2007 at which
it reviewed and approved a number of constituent changes to
the FTSE Xinhua Index Series, including the FTSE Xinhua
China 25, A50, 200, 400 and small-cap indices. All changes
will be applied from Monday, 22 January 2007. 

    In the FTSE/Xinhua China 25, China Merchant Bank (H
share 3968) is added while Sinopec Shanghai Petrochemical
(H share 0338) is deleted to rebalance.  This index is used
internationally as the basis of several ETFs, listed on New
York, Hong Kong and London Stock Exchanges.  With over USD
6.4 billion of linked assets, the index is a leading
measure of the Red Chips and H share market. 

    Moreover, the Committee has also approved two additions
and deletions to the FTSE/Xinhua China A50 Index: Shanxi
Taigang Stainless Steel (A share, 000825) and Beijing North
Star (A share, 601588) were added while Tianjin Port (Group)
(A share, 600717) and Shandong Aluminium Industry (A share,
600205) were deleted accordingly. Used by domestic
investors, and the growing QFII community as the basis of
many investment products, the FTSE/Xinhua China A50 index
is a leading measure of the dynamic China A share market. 


    There are also eleven turnovers in FTSE Xinhua China
200 index, and the inclusions include Huadian Power
International (A share, 600027) and Hainan Airlines (A
share, 600221), etc. For details of the changes please
refer to the full technical notice at
http://www.ftse.com/xinhua/english/Indices/Domestic_Investors/Index_Changes.jsp
.

    For more information about FTSE Xinhua Index, please
refer to http://www.ftsexinhua.com . 

    Notes to Editors

    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 indexes. With offices in Beijing, London,
Frankfurt, Hong Kong, Madrid, Paris, New York, San
Francisco, Boston, Shanghai and Tokyo, FTSE Group services
clients in 77 countries worldwide.  It calculates and
manages the FTSE Global Equity Index Series, which includes
world-recognized indexes ranging from the FTSE All-World
Index, the FTSE4Good series and the FTSEurofirst Index
series, as well as domestic indexes such as the prestigious
FTSE 100. The company has collaborative arrangements with
the Athens, AMEX, Cyprus, Euronext, Johannesburg London,
Madrid, NASDAQ Thailand and Taiwan exchanges, as well as
Nomura Securities, Hang Seng and Xinhua Finance of China.
FTSE also has a collaborative agreement with Dow Jones
Indexes to develop a single sector classification system
for global investors.

    FTSE indexes 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 indexes to ensure that they are made
objectively and without bias.  Real-time FTSE indexes 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 IN XINHUA FTSE QUARTERLY
REVIEW

    FTSE/Xinhua China 25 Index
    Inclusion: 1
    Exclusion: 1

    FTSE Xinhua China B 35
    Inclusion: 3
    Exclusion: 3

    FTSE/Xinhua China A50 Index
    Inclusions: 2
    Exclusions: 2

    FTSE Xinhua 200 Index
    Inclusions: 11
    Exclusions: 11

    FTSE Xinhua 400 Index
    Inclusions: 33
    Exclusions: 33

    FTSE Xinhua Small Cap Index
    Inclusions: 34
    Exclusions: 12

    For more information, please contact: 

    Beijing

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

    Shanghai

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

     Meredith Blakemore
     FTSE Asia Pacific
     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] 


SOURCE  Xinhua FTSE Index