The first internationally available China A share futures contract based on the FTSE/Xinhua China A50 Index will be listed on the Singapore Exchange (SGX), according to a joint statement by SGX and FTSE/Xinhua Index (FXI) on Wednesday.

 

The FTSE/Xinhua China A50 Index Futures Contract is scheduled to be launched by September this year.

 

"The A50 is one of the tradable indices in the FTSE/Xinhua Index Series, constituting the top 50 China A share stocks by market capitalization, listed on the Shanghai and Shenzhen exchanges," the statement said.

 

It is expected that this cooperation between SGX and FXI will provide international investors with access and the ability to manage their exposure to China's domestic A share market.

 

The move also proves the investment community's increasing confidence in FXI and its index series, according to Zhu Shan, Managing Director of FXI.

 

Established in late 2000, FTSE/Xinhua Index is a Hong Kong incorporated joint venture between global index provider FTSE Group and Xinhua Finance. It develops financial indices for the Chinese market following internationally proven index methodology.

 

(Xinhua News Agency January 26, 2006)