FTSE Xinhua offers QDII indices
FTSE Xinhua Index, a joint venture between FTSE Group and Xinhua Finance, yesterday launched two benchmark indices for China's qualified domestic institutional investors (QDII) scheme, even though the scheme is some way off.
'We don't have insider information on when [QDII] is going to happen,' said Paul Hoff, director of the joint venture and FTSE Asia-Pacific managing director.
'But we expect Chinese institutional investors can eventually invest overseas and Hong Kong will be the primary market.'
The two indices would give FTSE Xinhua Index a head start in tapping the huge market potential QDII offered, Mr Hoff said, adding: 'We plan for what the future requirements would be for the Chinese institutional investors who want to invest outside China.'
The FTSE Xinhua QDII HK index comprises 154 companies. The FTSE Xinhua QDII HK ex-H Share Index offers Hong Kong stocks and red chips that cannot be bought in mainland markets.