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HKEx and FTSE Xinhua Index Sign Agreement for FXI China 25 Futures and Options Contracts.



HONG KONG, April 21 /Xinhua-PRNewswire/ -- Hong Kong Exchanges and Clearing Hong Kong Exchanges and Clearing Limited (Chinese: 香港交易及結算所有限公司, also 香港交易所 or 港交所; abbreviated as HKEx; HKSE: 0388  Limited (HKEx) and FTSE FTSE

A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.

Notes:
The FTSE is similar to Standard & Poor's in the United States.
 Xinhua Index Limited (FXI FXI Freedom of Expression Institute (Johannesburg, South Africa) ), the leading China index provider established by FTSE Group and Xinhua Finance, today announced they have signed an agreement that will enable HKEx to introduce futures and options on the FTSE/Xinhua China 25 Index (FXI China 25). Trading is scheduled to begin on 23 May.

The FXI China 25, a tradable index designed to serve as a base for derivatives and other financial instruments, tracks the performance of the 25 largest and most liquid Mainland enterprise stocks (H shares and red chips) listed in Hong Kong. Each constituent's weighting in the index is free-float adjusted and capped at 10 per cent, and frequent reviews ensure the index remains a true reflection of the market.

The FXI China 25 Futures and Options will complement the wide range of Mainland-China related products currently trading on HKEx's securities and derivatives markets. These include the nearly 200 H-share and red-chip companies listed on The Stock Exchange of Hong Kong Stock Exchange of Hong Kong (SEHK)

Only stock exchange located in Hong Kong.
 Limited, a wholly-owned subsidiary of HKEx, stock futures and stock options on individual H shares and red chips, H-shares Index Futures Index Futures

A futures contract on a stock or financial index. For each index there may be a different multiple for determining the price of the futures contract.

Notes:
For example, the S&P 500 index is one of the most widely traded index futures contracts in the U.S.
 and H-shares Index Options.

"This agreement allows us to build on our strength as the premier international marketplace for Mainland China-related securities and derivatives," said HKEx Chief Operating Officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
 Patrick Conroy. "Backed by the international indexing experience of the FTSE Group and the Xinhua Finance's expertise on Mainland China-related companies, FXI is an ideal business partner for this project."

FTSE Chief Executive and FXI Co-chairman Mark Makepeace and Fredy Bush, Xinhua Finance CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  and FXI Co-chairman, said the launch of the contracts is further proof that FXI is firmly established as the leading index provider for the China markets.

"These products are an important contribution to investors in the China markets because they allow them to hedge investments in the cash markets in a way that was not possible before," said Ms Bush. "The potential China stock index futures market is huge and FXI is committed to developing indices to serve that need," said Mr Makepeace.

For constituent details, please visit http://www.ftse.com/indices_marketdata/xinhua/constituents.jsp .

About HKEx

Hong Kong Exchanges and Clearing Limited (HKEx) is the publicly listed holding company of Hong Kong's stock and derivatives exchanges and their associated clearing houses. Its stock exchange is one of the world's 10 largest in terms of market capitalisation. HKEx provides a comprehensive range of products and services for issuers and investors. Trading as well as clearing and settlement on HKEx's exchanges is fully electronic. For further information HKEx, please visit http://www.hkex.com.hk/ .

About FTSE Xinhua Index

Established in late 2000, FTSE Xinhua Index (FXI), a joint venture between Xinhua Financial Network, a subsidiary of Xinhua Finance Limited and FTSE Group, came into being to facilitate the creation of real-time indices for the Chinese markets. The indices can be used as a basis for the trading of derivatives, index-tracking funds, Exchange Traded Funds Exchange Traded Funds (ETF)

Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual 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/ .
  For more information, please contact:

   Joy Tsang
   Xinhua Finance / Xinhua FTSE Index
   Tel:   +852-3196-3983
   Email: joy.tsang@xinhuafinance.com

   Lorraine Chan
   HKEx Corporate Communications Department
   Tel:   +852-2840-3842
   Email: lorrainechan@hkex.com.hk

   Scott Sapp
   HKEx Corporate Communications Department
   Tel:   +852-2840-3860
   Email: scottsapp@hkex.com.hk



CONTACT: Joy Tsang of Xinhua Finance (Hong Kong), +852-3196-3983 or joy.tsang@xinhuafinance.com, Lorraine Chan of HKEx Corporate Communications Department, +852-2840-3842, or lorrainechan@hkex.com.hk, Scott Sapp of HKEx Corporate Communications Department, +852-2840-3860, or scottsapp@hkex.com.hk

Web site: http://www.xinhuafinance.com/ http://www.ftsexinhua.com/ http://www.ftse.com/indices_marketdata/xinhua/constituents.jsp
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Publication:PR Newswire
Geographic Code:9HONG
Date:Apr 21, 2005
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