Barclays Global Investors have filed a prospectus with the US Securities and Exchange Commission to add the iShares FTSE/Xinhua Hong Kong China 25 Index to its international exchange traded (ETF) offerings. This will be the first ETF tracking the Chinese market available to US investors
The iShares FTSE/Xinhua Hong Kong China 25 ETF will track the FTSE/Xinhua China 25 Index, which features the largest, most liquid Chinese equities available to foreign investors. The index constituents are accurately classified according to the sector definitions of the FTSE Global Classification system. The constituents of the FTSE/Xinhua China 25 Index are adjusted for free-float and subject to liquidity screens for investability. The index is capped to ensure that no individual company is excessively weighted in the index and that funds tracking the index comply with European and North American market regulations.
Mark Makepeace, FXI chairman and chief executive, FTSE Group says, "International investors are eager for a China index series that adopts transparent global standards like the FTSE/Xinhua China 25 Index. The FTSE/Xinhua China Indexes are created in a complete series and reflect China's vibrant economy."
FTSE/Xinhua Index Limited (FXI) is a Hong Kong incorporated, joint venture company between FTSE, the global index company, and Xinhua Financial Network.