Barclays to Offer China ETF

January 22, 2003 ( - Barclays Global Investors (BGI) has asked the US Securities and Exchange Commission (SEC) for permission to add the iShares FTSE/Xinhua Hong Kong China 25 Index Fund to its international exchange traded fund (ETF) lineup.

According to an announcement from FTSE/Xinhua Index Limited, the China Index provider, the Barclays product will be the first ETF tracking the Chinese market available to US investors. The new index will track China’s large cap equity market.

FTSE/Xinhua Index Limited is a joint venture between index provider FTSE Group and the Xinhua Financial Network.

The iShares FTSE/Xinhua Hong Kong China 25 ETF will track the FTSE/Xinhua China 25 Index, which features the largest, most liquid Chinese equities available to foreign investors, according to the news media announcement.  

The index constituents are accurately classified according to the sector definitions of the FTSE Global Classification system. The constituents of the FTSE/Xinhua China 25 Index are adjusted for free-float and subject to liquidity screens for investability. The index is capped to ensure that no company is excessively weighted in the index and that funds tracking the index comply with European and North American market regulations.