Restriction of Information not in Line With Prime Minister Wen Jiabao’s
statement "Information in the Areas of Commerce, Finance and the Economy Will
Flow Freely Without any Restrictions"
SHANGHAI, China, HONG KONG and LONDON, Oct. 31 /Xinhua-PRNewswire/ -–
Xinhua FTSE Index (XFI), the leading China index provider, announced that the
company has decided to appeal the case to a higher court following the court
ruling in Shanghai received today and reiterated that the company will
continue to calculate its suite of indexes for the domestic and international
investment community regardless of the expiry of the contract with SSE
InfoNet.
Fredy Bush, Co-chairman of XFI, said, “We have other contractual
arrangements in place which allow us to calculate indices in China. In
addition, obviously, index providers such as MSCI, S&P/CITIC, Dow Jones do
not need a contract in China to calculate China equity indices and license
investment products. We believe we should be treated in the same way as these
index providers.”
“Despite this ruling, XFI’s business operation will not be affected in
any way. XFI will move to appeal the case as we maintain our stance that
there had been no violation of our contract with SSE InfoNet. We are
disappointed at the ruling,” added Bush. “We own our indices and have the
right to license others to develop derivatives. XFI regrets that its contract
with SSE Infonet will not be renewed, and that strenuous efforts on its part
to settle the ongoing court action have not been successful.”
XFI receive the stock data necessary to calculate the China equity
indices from a 10-year agreement signed between Shanghai Securities News, a
wholly owned subsidiary of Xinhua News Agency and Xinhua Financial Network (a
wholly owned subsidiary of Xinhua Finance Limited), the partner company of
FTSE in the joint venture Xinhua FTSE Index. The agreement was signed in 2001
in Hong Kong and is governed by HK law.
The overall climate in China is moving toward one of openness and
transparency. Chinese Premier Wen Jiabao, speaking at a conference in London
in September 2006 reinforced his goal that the Chinese government will ensure
foreign media and information providers enjoy reporting freedom and rights.
“Information in the areas of commerce, finance and the economy will flow
freely without any restrictions” he confirmed.
Bush said, “China accession to WTO ensures the continuous opening of
China’s market and fair competition here. It is of great significance to
China being part of the global economy. XFI is merely seeking the right to
compete on a level playing field with other organisations and to continue to
offer index products to the market.”
Since 2001, XFI has operated within China and internationally, to develop
highly successful indexes which meet the needs of investors and have
contributed to the ongoing development of Chinese equity markets. It remains
committed to continue to playing a part in the healthy development of China's
markets.
More information about Xinhua FTSE Index Ltd and its product suite is
available at http://www.xinhuaftse.com or from press offices below.
About Xinhua FTSE Index
Established in late 2000, Xinhua FTSE Index (XFI), 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 Xinhua FTSE 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.xinhuaftse.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, Hang Seng and Xinhua Finance
of China, FTSE recently signed an agreement with Dow Jones Indexes to develop
a single sector classification system for global investors.
FTSE indices 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 indices to ensure that they are made
objectively and without bias. Real-time FTSE indices 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 .