Global index provider FTSE has recently formed a joint venture with Xinhua Financial News, a newsagency under the Chinese government, to create a series of indices tracking the Chinese stock market by March 2001. Called FTSEXinhua Index Limited FXIL, the 5050 joint venture company is hopeful that its new indices will be used as performance benchmarks for overseas derivative traders, index fund managers and exchange traded funds investing in the Chinese market.
Currently there are about 20 closed-end funds in China tracking the domestic investor-only A share market. As a response to market needs, Xinhua recently also introduced a Xinhua Composite Index of 400 Chinese companies listed on the A...
