FTSE Acquires FXI

October 19, 2010

FTSE announced in mid-September that it had bought out its partner in FTSE Xinhua Index Ltd. (FXI) to gain complete control of the joint venture.

In 2001, FTSE teamed up with financial news and data provider Xinhua Finance to create FXI, with the intention of offering indexes for both foreign and domestic Chinese investors. FXI currently offers a full suite of indexes covering China’s complicated markets, among them the blue-chip FTSE/Xinhua China 25 Index. According to FTSE, almost 60 percent of assets invested in ETFs targeting China are benchmarked to an FXI index.

The company is being renamed FTSE China Index Ltd., or FCI, with the indexes rebranded accordingly. The methodology, review schedules, management of the indexes and free-float rules will also be brought into alignment with FTSE’s standards, and the FXI advisory committee will be dissolved, with the indexes now being overseen by FTSE’s own committees.

 

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