FXI Statement in Response to SSE INFONET Litigation

FXI Statement in Response to SSE INFONET Litigation

October 10, 2006

     
  
    HONG KONG and LONDON, Oct. 10 /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, is the subject of a legal
challenge by SSE INFONET with regards to its right to
maintain calculation of its suite of real time indexes for
the China market.  The court case is scheduled to take
place on 11 October 2006 in Shanghai.

    Mark Makepeace, Co-Chairman, FTSE Xinhua Index Limited,
today issues the following statement in response to the
court action filed by SSE INFONET:

    "FXI is meeting the needs of domestic and
international investors in China.  Its practices are no
different than any other index provider in China, of which
there are many.  We believe that China wants to be part of
the global market place and FXI has been facilitating this
by bringing China's markets to the world. 

    "All global markets encourage diverse products to
be created and listed on exchanges worldwide for
transparency and liquidity and FXI products are doing this
for China.  We feel the outcome of the court case is
important for the development of China's financial market.

    "The Shanghai Stock Exchange is the only provider
of stock market prices for companies listed on the
exchange.  It is the responsibility of all exchanges
globally to provide access to quotes on equitable terms to
all parties.  

    "FXI has not violated its contract with SSE.  More
importantly, we believe quotes should be in the public
domain as they are elsewhere in the world."

    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 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, and
Xinhua Finance of China, FTSE recently signed an agreement
with Dow Jones Indexes to develop a single sector
classification system for global investors.

    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]
     Email: [e-mail] 

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

    Beijing

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

SOURCE  FTSE Xinhua Index