China: ICBC makes fast-track entry to Xinhua FTSE index series
Xinhua FTSE Index (XFI), the leading China index provider, has announced the pending inclusion of Industrial and Commercial Bank of China (ICBC) within the Xinhua FTSE Index Series in advance of FXI’s regularly scheduled review. Fast-track rules have been applied to ICBC’s Hong Kong-listed H shares (Code:1398) and Shanghai- listed A shares (Code: 601398), with the issuances having met certain eligibility requirements.
ICBC shares are scheduled for formal inclusion within relevant Xinhua FTSE indices following market close on November 6, 2006. ICBC’s dual listing marks the world’s largest IPO to date. ICBC is the first Chinese corporation to go public on the Hong Kong and Shanghai stock exchanges on the same day. Its total H shares in issuance are 83,056,501,962, of which 50% are free floating. Total A shares in issuance are 250,962,348,064, of which 4% are free floating. Following fast-track entry, ICBC becomes a constituent of the Xinhua/FTSE China 25 Index and Xinhua FTSE Hong Kong Index. Xinhua/FTSE China 25 Index, consisting of the largest and most liquid H shares and Red Chips and used as the underlier for ETFs and derivatives worldwide (with over USD 6 billion assets against it), will be rebalanced with the removal of Yanzhou Coal Mining (Code: 1171). No deletion will be made from Xinhua FTSE Hong Kong Index, which had been adopted by China’s National Social Security Fund as the benchmark for its overseas equity investments earlier this year. ICBC’s A share will be included within Xinhua/FTSE China A50 Index, having fulfilled A share index fast entry requirements, which stipulate that the issuance must rank in the top 5 by total market capitalization among the eligible A Share universe, with free float over 3%. To rebalance the index, Shanghai RAW Water Supply (Code: 600649) will be removed. Moreover, ICBC will also be added to the 200, 400, 600, and All Share indices, as well as the Xinhua FTSE Insurance Investment Index. For further details regarding rebalancing, please refer to the technical notice here. The weighting of ICBC within all indices will be determined after market close on Nov. 6, 2006. More information on the Xinhua FTSE Index Series, including constituent lists, is available at http://www.ftsexinhua.com/ .
–www.theasianbanker.com (October 31 2006)–