omniture

Xinhua FTSE Index will Continue to Calculate and License Indices

Xinhua FTSE Index
2006-10-31 18:31 5203

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 .

Source: Xinhua FTSE Index
collection